The Government of Ghana has emerged victorious in an international tax arbitration case against Tullow Ghana Limited. An ICC arbitration tribunal has ruled in favor of Ghana, dismissing all claims brought by the oil company and upholding a $393.09 million tax assessment by the Ghana Revenue Authority. The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce, delivered its award on Tuesday, September 29, 2026.
The dispute centered on the taxation of business interruption insurance proceeds. According to Finance Minister Dr. Cassiel Ato Forson, the tribunal ruled in favor of Ghana and upheld the GRA's assessment in full. The tribunal found that the assessment did not breach the Petroleum Agreements, the penalty was properly applied, the assessment was not time-barred, and the GRA's enforcement action was lawful.
Dr. Forson commended the Office of the Attorney-General, the GRA, and Ghana's external legal counsel, Foley Hoag LLP, for their role in defending the country's position. He stated that the outcome vindicates the position Ghana has maintained throughout that every company operating in the country, regardless of its size, is subject to the laws of Ghana.
Despite the ruling, the government has indicated that discussions with Tullow to resolve outstanding tax matters will continue. These discussions cover both the matter determined by the tribunal and separate proceedings concerning the disallowance of loan interest. Tullow remains a vital partner to Ghana and is the country's largest petroleum producer, with operations in the Jubilee and TEN fields supporting Ghana's energy security, domestic gas supply, and thousands of livelihoods.
The government has assured that it will work closely with Tullow to implement the award in accordance with Ghanaian law while taking into account the continuity of operations in the Jubilee and TEN fields. The government aims to secure revenues due to the state without undermining Tullow's ability to continue operating and investing in Ghana.
Dr. Forson emphasized that Ghana's laws provide the Ghana Revenue Authority with the means to determine the time and manner in which assessed liabilities are met. He added that the government will implement the award in a manner that protects Ghana's revenue while preserving Tullow's ability to continue operating and investing in the country as a going concern.
The Ministry of Finance has stated that the government will ensure that the revenues due to the state are secured without undermining Tullow's ability to continue operating and investing in Ghana. The government is committed to working with Tullow to implement the award while protecting oil operations.
Key points
- The ICC tribunal upheld a $393.09 million tax assessment by the Ghana Revenue Authority against Tullow Ghana Limited.
- The government will continue talks with Tullow to resolve outstanding tax matters.
- The outcome of the case vindicates Ghana's position that every company operating in the country is subject to its laws.
