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.