Tullow Oil Wins BPRT Dispute with Ghana
In a significant legal victory, Tullow Oil has successfully challenged the application of the Branch Profit Remittance Tax (BPRT) to its operations in Ghana’s Deepwater Tano and West Cape Three Points fields. The International Chamber of Commerce (ICC) ruled in favor of Tullow, stating that the BPRT does not apply to its activities.
This ruling means Tullow will not be required to pay the previously assessed $320 million BPRT liability and will avoid future BPRT charges related to its Ghanaian operations.
What is BPRT?
The BPRT is a tax levied on profits earned by foreign businesses operating in a country and subsequently transferred (remitted) to their parent companies abroad.
Continuing Tax Discussions
While celebrating this win, Tullow Oil acknowledges that discussions with the Ghanaian government regarding two other tax claims are ongoing.
Leadership Change at Tullow
Meanwhile, Tullow Oil recently announced the impending departure of its Chief Executive Officer, Rahul Dhir. Dhir will step down from his position and the company’s board in 2025.
This news comes amidst a backdrop of legal and financial developments for the company.
Stay tuned for updates on Tullow Oil’s progress in resolving its remaining tax matters and its future trajectory under new leadership.