30th Sep 2026 10:46
(Alliance News) - Tullow Oil PLC shares slid on Wednesday after disclosing that critical arbitration proceedings in Ghana had not ended in the company's favour.
The London-based oil and gas company's stock dropped 48% to 10.08 pence per share on Wednesday morning.
Tullow Oil said it was "disappointed" by the International Chamber of Commerce tribunal's decision.
The tribunal ruled that a USD196.5 million corporate income tax assessment does not breach Tullow's petroleum agreements with the Ghanaian governments.
The tax covers proceeds received by Tullow from financial 2016 to 2019 under Tullow's corporate business interruption insurance policy.
"The tribunal has also ruled that the assessment of penalties of 100%, fall outside the scope of the contractual protections in Tullow's petroleum agreements," Tullow said.
According to news outlet Modern Ghana, Ghanaian Finance Minister Cassiel Ato Forson issued a statement on Wednesday saying the court had ruled in favour of Ghana with respect to USD393.1 million in taxes owed by Tullow.
Tullow "will now consider next steps after further engagement with the government of Ghana", it said, with an update to come "in due course".
By Holly Munks, Alliance News reporter
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