Ghana wins $393m Tullow tax arbitration as tribunal upholds GRA assessment

Ghana has secured a major victory in an international tax arbitration involving Tullow Ghana Limited, with an arbitral tribunal ruling in favour of the Republic over the taxation of business interruption insurance proceeds.

The tribunal, constituted under the Rules of Arbitration of the International Chamber of Commerce (ICC), dismissed Tullow’s claims and upheld the Ghana Revenue Authority’s (GRA) tax assessment amounting to US$393,091,993.70.

The assessment relates to proceeds received by Tullow under its corporate business interruption insurance policy. Tullow had challenged the assessment through ICC arbitration, arguing that the tax claim breached its rights under the applicable Petroleum Agreements. Tullow had disclosed the dispute since 2023, following the GRA’s assessment in December 2022.

In a statement issued on Wednesday, September 30, Finance Minister Dr Cassiel Ato Forson said the tribunal found that the GRA’s assessment did not breach Ghana’s Petroleum Agreements with Tullow.

He said the tribunal also determined that the penalty imposed by the GRA was properly applied, the assessment was not time-barred and the GRA’s enforcement action was lawful.

“The Tribunal ruled in favour of Ghana,” Dr Forson stated, adding that the outcome “vindicates the position Ghana has maintained throughout: that every company operating in this country, regardless of its size, is subject to the laws of Ghana.”

The Finance Minister commended the Office of the Attorney-General, the Ghana Revenue Authority and Ghana’s external legal counsel, Foley Hoag LLP, for their roles in representing the interests of the Republic during the arbitration.

Dr Forson said the government would take steps to implement the arbitral award in accordance with Ghanaian law.

He also stressed that the government intends to ensure that implementation of the award does not undermine Tullow’s ability to continue its operations and investments in Ghana’s oil and gas sector.

The government will therefore seek to secure the tax revenues due to the state while maintaining Tullow’s capacity to continue operating and investing in the Jubilee and TEN oil fields, according to the Finance Minister.

The ruling comes against the backdrop of several tax disputes between Tullow and Ghana. Tullow has previously challenged other GRA assessments through international arbitration, including a separate dispute over loan-interest deductions.

In January 2025, an ICC tribunal ruled in favour of Tullow in a separate branch profits remittance tax dispute involving an assessment of about US$320.3 million. That case concerned a different tax issue from the business interruption insurance assessment decided in the latest ruling.

Tullow continues to operate Ghana’s Jubilee and TEN fields and reported strong operational performance in the first half of 2026, including recovery of outstanding historical gas receivables owed by the Government of Ghana.

The latest arbitration outcome represents a significant development in the government's efforts to enforce the country's tax laws while maintaining investment and production in Ghana's petroleum sector.