Tullow Oil has filed for arbitration in London over two tax bills amounting to $387 million which it’s unit in Ghana had received from local authorities.
The company made this public in a statement on Tuesday. The two tax charges which Tullow disputes relate to a period from 2010 to 2020 and are in addition to taxes it has already paid in Ghana.
The assessments relate to the disallowance of loan interest deductions for the fiscal years 2010 – 2020 and proceeds received by Tullow Oil Plc under Tullow’s Corporate Business Interruption Insurance policy.
“Tullow believes that resolution through international arbitration will bring certainty, which is in the best interest of all stakeholders,” the company statement highlighted.
According to Tullow, the tax bills from Ghana are “without merit”, as it engaged with Ghana’s government to resolve the dispute.
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Separately, Tullow said the hearing for a separate international arbitration, filed in 2021, on a $320 million additional tax bill from Ghana is scheduled for October with no decision expected before 2024.
Ghana is seeking help from the International Monetary Fund and is yet to secure a deal as it restructures its debt levels.
Source: Africafeeds.com
