The United Kingdom's Tullow Oil said on Thursday the International Chamber of Commerce (ICC) has ruled that the Branch Profit Remittance Tax (BPRT) does not apply to its operations in the Deepwater Tano and West Cape Three Points fields offshore Ghana, which include the Jubilee and TEN fields.
As a result, West Africa-focused Tullow will not have to pay the $320 million BPRT assessment and will not face future BPRT liabilities, the company said.
“We are delighted with the outcome and decision of the tribunal, which affirms our assessment and removes a material overhang from our business," said Tullow Chief Executive Officer, Rahul Dhir.
"We have continuously had confidence in the sanctity of our petroleum agreements and the dispute resolution process, which has now brought certainty to all parties.
"I look forward to constructive discussions with the Government of Ghana to resolve the remaining claims so that our collective focus remains on maximising value from the Jubilee and TEN fields."
BPRT is a tax on the profits that a foreign business makes in a country and then remits (transfers) back to its parent company abroad.
Tullow is still in discussions with the Government of Ghana to resolve two other tax claims.
(Reporting by Arunima Kumar in Bengaluru; Editing by Shreya Biswas)