In a notice to investors, the oil giant said 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.

Background

According to Tullow Oil Ghana, it 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.

GRA and tax disputes

Tullow‘s move follows similar concerns by other multinationals especially in the extractive sector that are raising questions about these assessments done by the GRA.

GRA recently in a statement announced that it has stepped down moves to go ahead with $773 million ‘back tax’ bill it imposed on the telecoms company. 

The authority also in a statement advised companies disputing the assessment to turn to its Tax Advisory Board and other mechanisms to address their concerns.

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.

Mr Kweku Awotwi, the Managing Director, Tullow- Ghana, said the rig agreements gives the company maximum flexibility to optimise the drilling schedule as the wells come on-stream and “we can assess their performance compared to our pre-drill estimates.”

Mr Awotwi was speaking during the company’s turn of the facts behind the figures programme of the Ghana Stock Exchange in Accra.

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Since, Tullow and its partners commenced the delivery of the Jubilee project in record time of 40 months, they have invested $16 billion in Ghana delivering around 180,000 barrel of oil per day of production with the potential to deliver more, he said.

He said the overall objective across both fields was to maximise and sustain plateau production, adding that “we need to drill wells to fill both Floating Production Storage and Offloading (FPSO) to their maximum capacity and then sustain it”.

He said the company has had good results from the drilling programme so far with all wells being delivered on time and within budget.

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Mr Awotwi said management made the decision to bring in a second FPSO to accelerate the tie-in of new wells and they would have five new wells online around the end of the year; two at Tweneboa, Enyenra, Ntomme (TEN) and three at Jubilee.

He said this would enable the company to increase production at TEN to round 80,000 barrels of oil per day and sustain Jubilee at over 100,000 barrel oil per day.

The Managing Director said “we are keen to play our part in the current licensing round and we see opportunities for Tullow right across the acreage that is available and we firmly believe and will be making a case to government that we have the skills, expertise, knowledge and history of success to make another major exploration impact in Ghana”.

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On Tullow’s contribution to Ghana, he said the Oil and Gas Industry currently contributes around six per cent of Ghana’s Gross Domestic Product, which was a strong but not overwhelming contribution in a mixed economy like Ghana’s.

“And that contribution comes in different forms including taxes and royalties, production entitlement to government as well as employment and training of Ghanaians as well indirect and multiplier effects on the economy,” he added.

He said in many ways, Ghana provided a model for how to successfully integrate a new industry like oil and gas into a modern and growing economy.

Mr Les Wood, the Chief Financial Officer, Tullow-Ghana said “we have a much improved balance sheet and a much improved macro-economic environment”.

He said over the next 12 months, the company needs to deliver in both West Africa reproduction and in East Africa redevelopment and; “we need to make sure our exploration campaigns have every chance of success.”

The ceremony, which started as early as 7am, had both Traditional and Christian elements, was well-attended with some list of dignitaries including former First Lady, Nana Konadu Agyemang Rawlings, satirist Kwaku Sintim Misa (KSM) and  Mr George Owusu, former CEO  of EO Group.

Mr Owusu promised the baby, Nyame Animunyam  Afia Asaa Afrakoma Sintim Misa 500 shares in Tullow Oil.

The programme, which was the first of its kind in the community witnessed a colourful cultural display,  coincided with the second-anniversary celebration of their marriage of the two.

Gifty Anti carried the baby and sat next to the queen mother Nana Afrakoma till she was called to hand the baby to the Chairman of the Council of Elders to carry on the naming rituals which was followed by administering of honey, water and wine instructing the baby to uphold truth and integrity throughout her life.

After that, the baby was given back to her mother who passed her on to the Queen mother to decorate her with bracelets, act she performed while speaking words of wisdom and inspiration to her.

Some selected elderly guests were given the opportunity to speak words of inspiration to the newborn baby which included Nana Konadu Agyemang Rawlings and Mr George Owusu, bringing the traditional part to an end.

After that, the royal couple was ushered into the ceremonial grounds to begin the Christian naming ceremony and refreshment.

Some of the personalities in the entertainment industry who graced the occasion were Becca, Ceccy Twum, Afia, and KOD.

Two magnificent cakes donated by Curious Cakes, a subsidiary of EKGS Culinary Institute, were cut to climax both naming ceremony and wedding anniversary.