Finance Minister Dr Cassiel Ato Forson says government will take steps to secure tax revenues owed to Ghana by Tullow Ghana Limited while ensuring the company remains capable of sustaining its operations and investments in the country.
His comments follow an international tax arbitration ruling in Ghana’s favour, with an arbitral tribunal constituted under the International Chamber of Commerce (ICC) Rules of Arbitration dismissing all claims brought by Tullow over the taxation of business interruption insurance proceeds.
The tribunal upheld the Ghana Revenue Authority’s assessment of US$393,091,993.70.
In a statement issued on Wednesday, September 30, Dr Ato Forson said government recognised Tullow’s contribution to Ghana’s petroleum sector and described the company as “a vital partner to Ghana” and the country’s largest petroleum producer.
He noted that Tullow’s operations in the Jubilee and TEN fields contribute to Ghana’s energy security, domestic gas supply and the livelihoods of thousands of Ghanaians.
“The Government will therefore work closely with Tullow to give effect to the award in accordance with Ghanaian law,” he said.
He added that government would take into account the need to maintain operations at the Jubilee and TEN fields and Tullow’s ability to finance the investments required to sustain them.
Discussions with Tullow to continue
Dr Ato Forson disclosed that government had been engaging Tullow before the tribunal delivered its decision, with the aim of resolving outstanding tax matters amicably.
He said those discussions would continue and cover both the matter determined by the tribunal and separate proceedings relating to 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.
By:Rachael Djabakie