RCS - Tullow Oil PLC - Disputed Tax Claims Referred to Arbitration

Tullow OilAnnouncement

14/02/2023 07:00

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RNS Number : 7935P  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 (http://www.tullowoil.com/) .

Follow Tullow on:

Twitter: www.twitter.com/TullowOilplc (http://www.twitter.com/TullowOilplc)

YouTube: www.youtube.com/TullowOilplc (http://www.youtube.com/TullowOilplc)

Facebook: www.facebook.com/TullowOilplc (http://www.facebook.com/TullowOilplc)

LinkedIn: www.linkedin.com/company/Tullow-Oil
(http://www.linkedin.com/company/Tullow-Oil)

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