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Ghana has secured a major victory in its tax dispute with Tullow Ghana Limited after an International Chamber of Commerce (ICC) arbitral tribunal dismissed the oil company’s claims and upheld the Ghana Revenue Authority’s (GRA) US$393.09 million tax assessment.
The tribunal’s award, delivered on September 29, 2026, relates to the taxation of proceeds Tullow Ghana received under a corporate Business Interruption Insurance policy covering the 2016–2019 financial years.
The decision followed arbitration proceedings initiated by Tullow after the GRA issued a corporate income tax assessment in 2022.
The ICC tribunal found that the assessment did not breach the applicable Petroleum Agreements between Ghana and Tullow and also determined that the assessment was not time-barred.
It further found that the GRA’s enforcement action was lawful.
What the tribunal decided
The dispute centred on an underlying corporate income tax assessment of approximately US$196.5 million, relating to insurance proceeds received by Tullow.
A 100% penalty was subsequently applied, bringing the total amount upheld by the tribunal to US$393,091,993.70. Tullow’s own disclosure confirms the tribunal upheld the assessment and ruled that the 100% penalties fell outside the contractual protections contained in its Petroleum Agreements.
The tribunal rejected Tullow’s claims that the assessment breached the company’s Petroleum Agreements with Ghana.
It also determined that the assessment was not unreasonable and that the penalty imposed by the GRA did not itself constitute a breach of the relevant contractual provisions.
How the dispute began
The case dates back to 2022, when the GRA assessed Tullow Ghana for tax relating to insurance proceeds received following the interruption of production associated with the FPSO Kwame Nkrumah.
According to Ghana’s position in the arbitration, the insurance proceeds represented income that was subject to taxation under Ghanaian law.
Tullow challenged the assessment and subsequently commenced ICC arbitration in London.
The company argued, among other things, that the assessment was inconsistent with its Petroleum Agreements and that the insurance arrangement had been established by its parent company, Tullow Oil plc.
Ghana rejected those arguments and maintained that Tullow Ghana was the beneficiary of the insurance proceeds and that the GRA had acted within its legal authority.
Tullow responds to ruling
Tullow has acknowledged the tribunal’s decision but expressed disappointment with the outcome.
The company said the ICC had ruled that the US$196.5 million corporate income tax assessment was not in breach of its Petroleum Agreements.
Tullow also noted that the tribunal determined the 100% penalties fell outside the scope of the contractual protections in those agreements.
The company said it would consider its next steps following further engagement with the Government of Ghana and would provide an update in due course.
Government to continue discussions with Tullow
Despite the ruling, Finance Minister Dr Cassiel Ato Forson said the government would continue engaging Tullow to resolve outstanding tax matters.
The discussions will cover the tax dispute decided by the tribunal as well as a separate proceeding involving the disallowance of loan-interest deductions.
Dr Forson described Tullow as an important partner to Ghana and the country’s largest petroleum producer.
The government says Tullow’s operations in the Jubilee and Tweneboa, Enyenra and Ntomme (TEN) fields contribute to Ghana’s energy security, domestic gas supply and thousands of livelihoods.
The government has indicated that implementation of the award will take into account the continuity of operations in the Jubilee and TEN fields and Tullow’s ability to continue investing in its Ghanaian operations.
GRA welcomes the decision
The Ghana Revenue Authority has welcomed the tribunal’s ruling, saying it reinforces its position that the assessment was made in accordance with Ghanaian tax laws.
The GRA said the outcome demonstrated the importance of strong institutions, sound tax administration and consistent application of the country’s tax laws.
It also said it would work with the government and Tullow Ghana to give effect to the award in accordance with Ghanaian law while taking into account the continuity of petroleum operations.
What happens next?
The tribunal’s ruling resolves the particular arbitration concerning the business interruption insurance proceeds, but discussions between Ghana and Tullow are continuing on outstanding tax matters.
A separate proceeding concerning the treatment of loan-interest deductions remains part of the broader dispute between the company and the Ghanaian authorities.
For Ghana, the immediate issue is how the award will be implemented and how the assessed amount will be recovered while maintaining the continuity of oil production and investment.
Tullow, meanwhile, says it will consider its next steps following further discussions with the government.
The dispute therefore remains significant not only because of the US$393.09 million assessment, but also because of its implications for Ghana’s petroleum revenues, tax administration and the future relationship between the government and one of the country’s major oil producers.
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