Tullow Oil Plc gained after a world physique discovered it wasn’t chargeable for a $320 million tax evaluation in Ghana, the place its key oil property are positioned.
The Worldwide Chamber of Commerce mentioned the tribunal discovered the department revenue remittance tax evaluation by the West African nation “falls exterior of the tax regime supplied for within the petroleum agreements,” in line with a Tullow assertion printed late Thursday. The corporate filed a request for arbitration in 2021.
The shares rose as a lot as 14% to 25 pence. The inventory pared good points to 24.34 pence as of 8:28 a.m. in London buying and selling.
- Advertisement -
Ghana handed back-tax calls for to a few of the greatest firms working there, together with MTN Group Ltd., Gold Fields Ltd. and Kosmos Vitality Ltd. lately. The nation was looking for further income after dropping entry to worldwide capital markets due to its ballooning debt and loan-service prices.
The ICC announcement is a lift for Tullow after Chief Govt Officer Rahul Dhir mentioned he would step down and Kosmos Vitality dropped a bid for the explorer following “very preliminary discussions” round a deal.
“The elimination of an extra legal responsibility will take some strain off the stretched stability sheet,” Ashley Kelty, an analyst at Panmure Gordon & Co., mentioned in a word.
Tullow nonetheless has two remaining disputed tax assessments from the Ghana Income Authority for which it filed requests for arbitration with the ICC. They relate to mortgage curiosity over a decade and enterprise interruption insurance coverage proceeds it acquired. These assessments whole $387 million plus penalties, Tullow mentioned in 2023.
“I stay up for constructive discussions with the federal government of Ghana to resolve the remaining claims,” Dhir mentioned within the assertion.
Whereas the choice in favor of Tullow brings optimism forward of the opposite instances, changing Dhir presents one other impediment, Kelty mentioned. “Uncertainty over who will develop into the following CEO is about to stay a cloud over the corporate for the approaching months.”
Generated by readers, the feedback included herein don’t replicate the views and opinions of Rigzone. All feedback are topic to editorial evaluate. Off-topic, inappropriate or insulting feedback might be eliminated.
MORE FROM THIS AUTHOR
Bloomberg
