Page 10 - AfrOil Week 07 2023

AfrOil PERFORMANCE AfrOil

AGOCO, a subsidiary of NOC, is developing eight oilfields (Photo: AGOCO)
The company is also implementing a project progress due to the fluid security situation and
with KAMCO Oil Services to develop training frequent closures of main oil fields. Libya has
for engineers and update technology for drill- two rival administrations supported by differ-
ing oil wells. New techniques for evaluating rock ent militias and foreign powers. The country has
layers in oil-producing wells and water injection therefore faced many challenges as rival factions
wells are being used. have repeatedly blocked main oil facilities to
Exploration operations were making slow demand financial or political benefits. ™

POLICY
Tullow Oil seeks arbitration over disputed

$387mn in back taxes imposed by Ghana

GHANA TULLOW Oil (UK/Ireland) is seeking arbitra-
tion over a disputed $387mn in tax assessments
received from Ghana, having filed a request with
the London-based International Chamber of
Commerce (ICC).
The amount, plus penalties, breach the rights
of its local unit, Tullow Ghana Ltd (TGL), under
its petroleum agreements, according to the
Africa- and South America-focused oil and gas
company.
“Tullow considers that the two disputed tax
assessments, which total $387mn plus penalties,
breach TGL’s rights under its Petroleum Agree-
ments. Tullow’s decision to file for arbitration on
these matters does not result in any change to
the overall exposure previously disclosed,” the
London-listed company said in a statement on Tullow’s main productive assets are in Ghana’s offshore zone (Image: Tullow Oil)
Tuesday, February 14.
Tullow paid over $119mn in taxes last year, barrel), as historical capital allowances will have
the company said in a January 25 update, char- been fully utilised in the first quarter of 2023.
acterising the demand for back taxes from the The company “has received both revised and
Ghana Revenue Authority (GRA) as being new tax assessments from the Ghana Revenue
“without merit.” Authority throughout 2022, with these assess-
Tullow said in 2023 cash taxes in Ghana are ments not resulting in an increase to the overall
expected to be in excess of $300mn (at $80 per exposure previously disclosed,” it said.

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