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The Arbitration for International Chamber of Commerce in London has ruled in favor of the government against Tullow Oil's nearly US$400 million tax charge.

For some, the ruling should mean that the Government of Ghana can now go ahead and let Tullow pay the almost US$400 million tax charges on some loan interest deductions and corporate insurance issues. 

Tullow Oil took up the issue to the tribunal in London, arguing that the charge by the Ghana Revenue Authority breached Ghana’s Petroleum Agreement. The penalty was applied as well.

However, the Tribunal ruled in favour of Ghana, saying its action was within the law. 

Earlier this year, the Tribunal had rulings by the court in its favour.

However, it is not clear for now if the  Government of Ghana may move to enforce this ruling due to the possible impact on Tullow oil and its operations in Ghana.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.