In a significant development, the International Chamber of Commerce (ICC) has ruled in favour of Tullow Oil regarding a $320 million tax dispute with the Ghana Revenue Authority (GRA) according to a release by the West Africa-focused company.
The ICC determined that the Branch Profit Remittance Tax (BPRT) does not apply to Tullow's operations in Ghana's Deepwater Tano and West Cape Three Points fields.
Consequently, Tullow is exempt from the $320 million BPRT assessment and will not face future BPRT liabilities related to these operations.
The arbitration ruling on the BPRT is a setback for Ghana and the GRA, as the decision effectively denies the country $320 million in expected revenue.
