Tullow Oil announced Thursday that the International Chamber of Commerce (ICC) has ruled in its favor, exempting the company from a $320 million Branch Profit Remittance Tax (BPRT) assessment related to its operations in Ghana’s offshore Deepwater Tano and West Cape Three Points fields.
The BPRT is a tax imposed on profits that foreign companies generate within a country and then transfer back to their parent companies overseas.
Tullow Oil argued that the BPRT did not apply to its operations in Ghana, and the ICC upheld this claim.
This ruling not only saves the company a significant sum but also eliminates future BPRT liabilities associated with these operations.
Despite this victory, Tullow Oil continues to engage in discussions with the Government of Ghana to resolve two other outstanding tax claims.
This development has significant financial implications for Tullow Oil, bolstering its financial position and potentially enhancing its future investment prospects.
