Tullow Oil PLC Disputed Tax Claims Referred to Arbitration
February 14 2023 - 2:00AM
RNS Non-Regulatory
TIDMTLW
Tullow Oil PLC
14 February 2023
TULLOW OIL PLC
TULLOW GHANA LIMITED REFERS DISPUTED TAX CLAIMS TO INTERNATIONAL
ARBITRATION IN LONDON
14 February 2023 - Tullow Oil plc (Tullow) announces that Tullow
Ghana Limited (TGL) has filed requests for arbitration with the
International Chamber of Commerce in London in respect of two
disputed tax assessments received from the Ghana Revenue Authority
(GRA).
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. The requests for arbitration have been filed in
accordance with the dispute resolution process set out in the
Petroleum Agreements which govern TGL's activities in Ghana. A copy
of the Petroleum Agreements can be viewed on the website of the
Ghana Petroleum Register.
Tullow considers that the two disputed tax assessments, which
total $387 million plus penalties, breach TGL's rights under its
Petroleum Agreements. Tullow's decision to file for arbitration on
these matters does not result in any change to the overall exposure
previously disclosed.
Tullow believes that resolution through international
arbitration will bring certainty, which is in the best interest of
all stakeholders. Notwithstanding this formal step, Tullow intends
to continue to engage with the Government of Ghana, including the
GRA, with the aim of resolving these disputes on a mutually
acceptable basis.
Background to the assessments
TGL has received a revised corporate income tax assessment for
$190.5 million from the GRA relating to the disallowance of loan
interest for the fiscal years 2010 - 2020. Tullow has previously
disclosed assessments by the GRA relating to the same issue; the
revised assessment received in December 2022 supersedes all
previous claims.
TGL has also received a new corporate income tax assessment and
demand notice for $196.5 million from the GRA relating to proceeds
received by Tullow during the fiscal years 2016 - 2019 under
Tullow's corporate Business Interruption Insurance policy,
previously referred to in Tullow's Trading Update on 25 January
2023.
Branch Profits Remittance Tax arbitration
Tullow has previously filed a request for arbitration in respect
of a separate assessment for Branch Profits Remittance Tax of $320
million in 2021. A hearing in respect of this dispute is scheduled
for October 2023.
Ends
CONTACTS
Tullow Oil plc Camarco
(London) (London)
(+44 20 3249 9000) (+44 20 3757 4986)
Robert Hellwig Billy Clegg
Matthew Evans Georgia Edmonds
Rebecca Waterworth
==================== ====================
Notes to editors
Tullow is an independent oil & gas, exploration and
production group which is quoted on the London and Ghanaian stock
exchanges (symbol: TLW) and is a constituent of the FTSE250 index.
The Group has interests in over 30 licences across eight countries.
In March 2021, Tullow committed to becoming Net Zero on its Scope 1
and 2 emissions by 2030. For further information, please refer to
our website at www.tullowoil.com .
Follow Tullow on:
Twitter: www.twitter.com/TullowOilplc
YouTube: www.youtube.com/TullowOilplc
Facebook: www.facebook.com/TullowOilplc
LinkedIn: www.linkedin.com/company/Tullow-Oil
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