Tullow Oil has lost an arbitration over a $196.5 million corporate income tax assessment in Ghana after an International Chamber of Commerce tribunal ruled that the assessment did not breach the company's Petroleum Agreements.
The assessment relates to proceeds Tullow Oil received during the 2016-2019 financial years under its corporate business interruption insurance policy.
The tribunal also ruled that an assessment of penalties of 100% falls outside the scope of the contractual protections contained in Tullow's Petroleum Agreements.
“Tullow is disappointed that the Tribunal has come to this decision and will now consider next steps after further engagement with the Government of Ghana,” the company said.
ullow Oil added it will provide an update in due course.