Tullow Oil announced on Thursday that it has been exempted from a $320 million tax following an International Chamber of Commerce (ICC) ruling regarding its operations in Ghana.
The ruling determined that the Branch Profit Remittance Tax (BPRT) does not apply to Tullow’s activities in the Deepwater Tano and West Cape Three Points fields, located offshore Ghana.
This decision means Tullow, a company focused on West Africa, will not be required to pay the substantial BPRT assessment. Additionally, it will not face any future liabilities related to this tax.
BPRT is typically levied on the profits foreign companies remit from a host country back to their parent company abroad.
While the ruling marks a significant win for Tullow, the company is still engaged in discussions with the Government of Ghana regarding two other ongoing tax claims.
The outcome of these discussions remains to be seen as both parties work toward a resolution.