Ghana wins $196.5m tax battle against oil tycoon Dossou-Aworet’s Tullow

Tullow Oil, partly owned by Beninese-Gabonese oil tycoon Samuel Dossou-Aworet, has lost a $196.5m tax dispute with the Ghanaian government after a tribunal ruled against the London-listed energy company.

The dispute centred on corporate income tax linked to insurance proceeds received by Tullow between 2016 and 2019.

Tullow had argued that Ghana’s tax assessment breached provisions contained in its petroleum agreements with the government. However, the tribunal rejected the company’s position, ruling that the assessment did not violate the agreements.

The tribunal also ruled that penalties equivalent to 100 per cent of the assessment were not protected by the contractual provisions relied upon by Tullow.

The decision adds to the fiscal pressure facing Tullow’s Ghana operations and could affect the company’s investment plans in the country.

Tullow said it was disappointed by the ruling and would consider its options after further engagement with the Ghanaian government.

Ghana’s Ministry of Finance, however, said it would work with Tullow to implement the tribunal’s decision in accordance with Ghanaian law.

The ministry also said it would consider measures to sustain operations at the Jubilee and TEN oilfields while supporting the investment needed to maintain production from the mature offshore assets.

Ghana’s Finance Minister, Cassiel Ato Forson, said the government would pursue recovery of the tax liability while ensuring that Tullow retained the capacity to operate and invest in the country.

The latest dispute is one of several tax disagreements between Tullow and Ghana.

A separate $190.5m tax assessment involving deductions for loan interest remains unresolved, with a tribunal hearing scheduled for 2027, according to the company.

Tullow is headquartered in London and focuses on oil and gas production in Africa. Ghana has become increasingly important to its portfolio following the company’s disposal of assets in Gabon and Kenya in 2025.

The transactions helped Tullow reduce its net debt and concentrate its operations on core assets, particularly its Ghanaian offshore interests.

Dossou-Aworet, the founder of Petrolin Group, has been active in Africa’s oil and gas industry since 1992, with investments spanning energy and infrastructure.

He holds a 16.8 per cent stake in Tullow, equivalent to 243,635,633 shares, with the holding currently valued at about $35.9m.

Tullow has also extended its West Cape Three Points and Deep Water Tano petroleum agreements with Ghana to 2040. The agreements cover the Jubilee and TEN fields and provide a longer operating horizon for the company as it seeks to sustain production and investment.

Despite continued balance-sheet pressure, Tullow secured a $1.3bn debt reprieve agreement with bondholders and Glencore Energy UK Ltd in 2026.

The arrangement delayed a looming repayment obligation, giving the company additional time to manage its debt while pursuing its strategy around its Ghanaian offshore assets.