An arbitration tribunal under the International Chamber of Commerce (ICC) has ruled in favour of Ghana in a tax dispute with Tullow Ghana Limited. The tribunal delivered its award on September 29, 2026, dismissing all claims by Tullow over the taxation of business interruption insurance proceeds. This ruling upheld the Ghana Revenue Authority's (GRA) tax assessment of $393,091,993.70 against the oil company.
According to the Ministry of Finance, the tribunal found that the tax assessment did not breach the applicable Petroleum Agreements. It also determined that the penalty imposed was properly applied, the assessment was not time-barred, and the GRA's enforcement action was lawful. The Ministry acknowledged the work of the Office of the Attorney-General, the GRA, and its external legal counsel, Foley Hoag LLP, in defending Ghana's interests.
The government views the outcome as reinforcing its position that companies operating in Ghana are subject to the country's laws, regardless of their size. This ruling comes as Ghana and the Jubilee partners continue efforts to maximise the prospects of the Jubilee and TEN oil fields. The Ministry noted prior discussions with Tullow to resolve outstanding tax matters amicably, which will continue.
The discussions will cover both the issues determined by the tribunal and separate proceedings concerning the disallowance of loan interest. Despite the arbitration outcome, the government described Tullow as a "vital partner" and Ghana's largest petroleum producer. Tullow's operations in the Jubilee and TEN fields support the country's energy security, domestic gas supply, and thousands of livelihoods.
The government will work closely with Tullow to implement the tribunal's award in accordance with Ghanaian law. Implementation will take into account the continuity of operations in the Jubilee and TEN fields and Tullow's capacity to sustain required investments. The Ministry stated that Ghanaian law gives the GRA authority to determine the time and manner in which assessed liabilities are met.
The government intends to ensure the award is implemented to secure revenues due to the Ghanaian people while allowing Tullow to continue operating and investing in Ghana. The implementation will be done in a manner that allows Tullow to operate as a going concern. This approach aims to balance revenue collection with the need to maintain Tullow's investment in the country's oil sector.
The Ministry of Finance expressed satisfaction with the ruling, highlighting the importance of the GRA's role in enforcing tax laws. The government remains committed to working with Tullow and other partners to develop Ghana's oil and gas sector. The ruling is seen as a significant milestone in Ghana's efforts to assert its regulatory authority in the extractive industry.
Key points
- The ICC tribunal upheld Ghana's tax assessment of $393,091,993.70 against Tullow Ghana Limited.
- The ruling reinforces Ghana's position that all companies operating in the country are subject to its laws.
- The government will implement the award while ensuring Tullow's continued operations and investments in Ghana.
