Tullow celebrates success: Tax dispute in Ghana resolved

Tullow experienced a surge in its share price after it was announced that the company will not be held accountable in a significant tax dispute in Ghana. The decision by an international arbitration panel brought clarity to the protracted conflict over a tax claim amounting to $320 million. The International Chamber of Commerce stated that the tribunal found that the tax imposed by Ghana on profit distributions was outside the tax regime stipulated in the petroleum agreement. Benefited by this decision, Tullow expressed relief after the company had already initiated arbitration proceedings in 2021. These positive news were immediately reflected in the company's market valuation, as investors reacted with relief to the resolution of the situation. The decision bolsters confidence in the company's strategically important oil resources in the region.