Ghana has secured a major legal victory in an international tax arbitration brought by Tullow Ghana Limited, with an arbitral tribunal constituted under the International Chamber of Commerce (ICC) ruling in favour of the state over a disputed tax assessment of approximately US$393.1 million.
According to a statement issued by the Ministry of Finance on September 30, 2026, the tribunal dismissed all claims advanced by Tullow and upheld in full the Ghana Revenue Authority’s assessment relating to the taxation of business interruption insurance proceeds.
The ruling means Ghana’s tax authorities can proceed with the enforcement of the assessment amounting to US$393,091,993.70, a figure contested by Tullow in the arbitration proceedings.
Finance Minister Dr. Cassiel Ato Forson said the tribunal found that the assessment did not breach the relevant petroleum agreements, that penalties imposed were properly applied, and that the assessment was not time-barred.
The tribunal also determined that enforcement actions undertaken by the Ghana Revenue Authority were lawful.
Government described the outcome as a vindication of its longstanding position that all companies operating in the country, irrespective of their size or sector, remain subject to Ghanaian law and tax obligations.
The Finance Minister commended the Office of the Attorney-General, the Ghana Revenue Authority and external legal counsel Foley Hoag LLP for their role in defending the Republic’s interests throughout the proceedings.
Despite the legal victory, government struck a conciliatory tone towards Tullow, emphasising the company’s continued importance to Ghana’s petroleum sector.
The ministry noted that the award comes at a critical period as Ghana and its partners seek to maximise opportunities in the Jubilee and TEN oil fields.
“Tullow remains a vital partner to Ghana and is the country’s largest petroleum producer,” the statement said, highlighting the company’s contribution to energy security, domestic gas supply and employment.
Government further disclosed that discussions aimed at resolving outstanding tax issues were already underway before the tribunal’s award and would continue.
These discussions cover both the matter determined by the tribunal and separate proceedings related to the disallowance of loan interest claims.
Officials expressed confidence that a mutually beneficial resolution could be reached while ensuring compliance with Ghanaian law.
The Ministry of Finance indicated that it will work closely with Tullow to implement the award in a manner that safeguards public revenues while maintaining the operational and investment viability of the company.
Government stated that while Ghana Revenue Authority has the legal authority to determine the timing and manner of settlement of assessed liabilities, implementation of the award will take into account the need to sustain operations and future investments in the Jubilee and TEN fields.
The statement stressed that government intends to secure revenues due to the Ghanaian people while preserving Tullow’s ability to continue operating and investing in Ghana as a going concern.
Source: businesspostonline
