Tullow Oil, an independent energy company partly owned by Beninese-Gabonese billionaire Samuel Dossou-Aworet has lost a $196.5 million tax dispute with Ghana after a tribunal rejected the London-listed producer’s argument that the assessment breached its petroleum agreements.

The ruling adds to mounting fiscal pressure on Tullow’s Ghana operations and raises the stakes for its investment plans. The dispute centers on corporate income tax linked to insurance proceeds Tullow received between 2016 and 2019.

Ghana’s authorities imposed the assessment as the government seeks to capture more revenue from established offshore oil projects, while Tullow argued that its contractual arrangements with the state protected it from the tax liability.

Tribunal rejects Tullow’s claim

The tribunal ruled that Ghana’s corporate income tax assessment did not breach Tullow’s petroleum agreements. It also found that penalties equal to 100% of the assessment were not protected by the contractual provisions the company cited in challenging the liability, dealing a significant setback to Tullow’s case.

The decision adds to a series of tax disputes between Tullow and Ghana that have complicated the producer’s operations in the country. A separate $190.5 million assessment involving deductions for loan interest remains unresolved, with a tribunal hearing scheduled for 2027, according to the company.

Ghana pushes For revenue

Tullow said it was disappointed by the ruling and would consider its next steps after further engagement with the Ghanaian government. The response leaves room for additional discussions over the assessment as the company and authorities weigh the financial impact against the need to maintain production from Ghana’s offshore fields.

Ghana’s Ministry of Finance said it would work with Tullow to implement the tribunal’s award in accordance with Ghanaian law. The ministry also said it would consider the need to sustain operations at the Jubilee and TEN oilfields while supporting the investment required to maintain production from the mature assets.

Oil output meets tax pressure

Finance Minister Cassiel Ato Forson said the government would seek to enforce the tax liability and recover revenue owed to the state while preserving Tullow’s ability to operate and invest in Ghana. The balancing act underscores the competing fiscal and investment priorities surrounding the country’s established offshore oil industry.

Tullow, headquartered in London, is focused on oil and gas production in Africa. Ghana has become increasingly important to its portfolio after the company sold assets in Gabon and Kenya in 2025, transactions that helped reduce net debt and strengthen its balance sheet as it concentrated on core operations.

Dossou-Aworet holds stake

Dossou-Aworet, founder of Petrolin Group, has been active in Africa’s oil and gas industry since 1992, building a portfolio spanning energy and infrastructure. He owns a 16.8% stake in Tullow, equivalent to 243,635,633 shares, with the holding currently valued at about $35.9 million.

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

Debt deal buys more time

Tullow entered 2026 under continued balance-sheet pressure but secured a $1.3 billion debt reprieve agreement with bondholders and Glencore Energy UK Ltd.

The arrangement delayed a looming repayment, giving the company additional time to manage its obligations while pursuing its strategy around Ghana’s offshore oil assets.