Ghana will secure Tullow tax revenues while protecting Jubilee, TEN investments – Ato Forson

Finance Minister Dr Cassiel Ato Forson says the government will ensure Ghana receives the revenues due from Tullow Ghana Limited following the country’s victory in an international tax arbitration, while safeguarding the company’s ability to sustain its operations and investments. An arbitral tribunal constituted under the International Chamber of Commerce Rules of Arbitration has dismissed all claims brought by Tullow over the taxation of business interruption insurance proceeds and upheld the Ghana Revenue Authority’s assessment of US$393,091,993.70. Dr Forson said the government recognises Tullow’s importance to Ghana’s petroleum sector, describing the company as “a vital partner to Ghana” and the country’s largest petroleum producer.

In a press statement issued on Wednesday, September 30, he noted that Tullow’s operations in the Jubilee and TEN fields contribute to energy security, domestic gas supply and thousands of Ghanaian livelihoods. “The Government will therefore work closely with Tullow to give effect to the award in accordance with Ghanaian law,” he said. “In doing so, the Government will have due regard to the continuity of operations in the Jubilee and TEN fields and Tullow’s capacity to sustain the investments required in those fields.” The Finance Minister also disclosed that government had been engaged in discussions with Tullow before the tribunal’s decision to resolve outstanding tax matters amicably.

He said those discussions would continue, covering both the matter determined by the tribunal and separate proceedings concerning the disallowance of loan interest. “The Government intends to ensure that the award is implemented in a way that secures the revenues due to the Ghanaian people while preserving Tullow’s ability to continue operating and investing in Ghana as a GOING CONCERN,” he added. Ghana has secured a major victory in an international tax arbitration case involving Tullow Ghana Limited, with an arbitral tribunal ruling in favour of the Republic over the taxation of business interruption insurance proceeds.

The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce, dismissed all claims brought by Tullow and upheld in full the Ghana Revenue Authority’s tax assessment of US$393,091,993.70. In a press statement issued on Wednesday, September 30, the Minister for Finance, Dr Cassiel Ato Forson, said 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. “The Tribunal ruled in favour of Ghana,” Dr Forson stated, adding that the outcome “vindicates the position Ghana has maintained throughout: that every company operating in this country, regardless of its size, is subject to the laws of Ghana.” Dr Forson commended the Office of the Attorney-General, the Ghana Revenue Authority and Ghana’s external legal counsel, Foley Hoag LLP, for their role in defending the interests of the Republic.

He said the government would work to implement the award in accordance with Ghanaian law while maintaining Tullow’s capacity to continue operating and investing in the Jubilee and TEN fields.