Page 12 - AfrOil Week 05 2023

AfrOil POLICY AfrOil

The agreement also provides for cooperation about $13bn.
in the area of carbon capture projects and solar Eni has its operations running in Libya
energy. despite ongoing security issues, producing gas
It aims to raise gas output for the Libyan mostly for the domestic market. In 2022, Libya
domestic market, as well as exports through the provided 2.63 bcm to Italy through the Green
development of two offshore gas fields in Block Stream pipeline.
NC-41, north of Libya. The fields will begin pro- The figure is much less than the 8 bcm aver-
duction in 2026 at the rate of 750mn cubic feet age the North African country used to supply
(21.2mn cubic metres) per day. Italy before the popular uprising in 2011. Libya’s
NOC said the fields hold 6 trillion cubic feet political struggles remain a key obstacle to the
(170bn cubic metres) of gas reserves, and pro- development of its oil and gas industry, which
duction will flow for at least 25 years. The project has been marked by years of war and underde-
is expected to generate net revenues to Libya of velopment. ™

Tullow Oil to engage Ghana over

“unmerited” $300mn tax bill

GHANA TULLOW Oil has become the second multina- Authority throughout 2022, with these assess-
tional company to push back on a tax bill from ments not resulting in an increase to the overall
the Ghana Revenue Authority (GRA) after tele- exposure previously disclosed.”
coms operator MTN Ghana. The UK-based company said that the tax
The Africa- and South America-focused oil assessments are “without merit” and would con-
and gas explorer says it will continue to engage tinue to actively engage “with the Government
with the government to resolve an imposed of Ghana with the aim to resolve these disputes
$300mn tax bill. on a mutually acceptable basis.”
Recent data from the Ghana Petroleum Fund Earlier in January, the GRA imposed a
(GPF) for the second half of 2022 indicate that $773mn fine on MTN Ghana for alleged out-
Tullow paid over $119mn in corporate taxes to standing unpaid taxes between 2014 and 2018,
the government last year. claiming that the telecom giant underreported
However, in its latest trading update ahead its domestic revenue by about 30%.
of the release of 2022 full-year results expected Meanwhile, Tullow said it plans to invest
on March 8, Tullow said that tax bills from the $400mn in 2023, up by $50mn from last year,
country’s revenue collection agency to pay more largely on its oilfields in Ghana, and the rest on
taxes are without merit. decommissioning. The budget is based on the
“Cash taxes are expected to be in excess of assumption that oil prices will average $80 per
$300mn in 2023 (at $80 [per barrel]) as historical barrel.
capital allowances in Ghana will have been fully Other operational expenses include will
utilised in the first quarter of 2023,” the com- include $40mn in Gabon, $20mn in Côte d’Ivo-
pany said. “Tullow has received both revised and ire, $10mn in Kenya and $30mn on exploration
new tax assessments from the Ghana Revenue and appraisal activities, the company said. ™

Tullow’s main productive assets lie offshore Ghana (Photo: Tullow Oil)

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