Tullow Oil Loses $196.5 Million Tax Dispute With Ghana
Tullow Oil lost a $196.5 million tax dispute with the Government of Ghana, causing the company's shares to plunge 34.3% in early trade.
An International Chamber of Commerce tribunal ruled against Tullow Oil in a $196.5 million tax dispute with the Government of Ghana. The tribunal rejected the company's claim that a corporate income tax assessment on insurance proceeds received between 2016 and 2019 breached its petroleum agreements. The ruling confirmed that the tax assessment was valid and that associated penalties, which equal 100% of the assessment, were not protected by contractual agreements.
Following the decision, Tullow Oil shares fell 34.3% to 12.82 pence in early trade. The financial blow comes as the London-listed producer has spent the last year selling assets in Gabon and Kenya to lower a debt load that exceeds one billion dollars.
Tullow Oil stated it is "disappointed that the tribunal has come to this decision" and indicated it will consider next steps after further engagement with the Government of Ghana.
