Tullow Oil to resume drilling after tax dispute

Tullow Oil, a UK-based oil giant, has announced plans to resume drilling in Ghana's oilfields in May 2025, following the successful resolution of a long-standing tax arbitration dispute with the Government of Ghana (GoG). 

The settlement of the tax dispute eliminates a whopping $320 million contingent liability and reinforces the integrity of Tullow's petroleum agreements in the country.

This development is expected to enhance Ghana's oil production capacity and further solidify its position as a key player in West Africa's oil industry.

“We are delighted with the outcome and decision of the tribunal, which affirms our assessment and removes a material overhang from our business," said Tullow Chief Executive Officer, Rahul Dhir.

"We have continuously had confidence in the sanctity of our petroleum agreements and the dispute resolution process, which has now brought certainty to all parties.

"I look forward to constructive discussions with the Government of Ghana to resolve the remaining claims so that our collective focus remains on maximising value from the Jubilee and TEN fields."

In 2024, Tullow's production from the Jubilee oil field was estimated at 33.9 thousand barrels of oil per day (kbopd) net, with the TEN project producing 10.2 kbopd net.

The successful resolution of the tax arbitration dispute is a significant milestone for Tullow Oil and the GoG. The dispute has been ongoing for several years, and its resolution is expected to pave the way for increased investment in Ghana's oil sector.

Increase investment

In addition to the resumption of drilling, Tullow Oil has also announced plans to increase its investment in Ghana's oil sector. The company has committed to investing millions of dollars in the development of new oil fields and the expansion of existing ones.

The GoG has welcomed Tullow Oil's decision to resume drilling and increase its investment in the country's oil sector.

The government has stated that it is committed to creating a favourable business environment that will attract more investment in the oil sector.

The resumption of drilling by Tullow Oil is expected to have a positive impact on Ghana's economy.

The oil sector is a significant contributor to Ghana's GDP, and the increased investment by Tullow Oil is expected to create new jobs and stimulate economic growth.

Wells onstream

In 2024, Tullow Oil completed a successful drill programme in the Jubilee oil field, bringing five new wells onstream. The programme was completed approximately six months ahead of schedule and without any recordable safety incidents.

The company's commitment to safety and environmental sustainability has been recognised by the government and international organisations.

Tullow Oil has implemented several initiatives to reduce its environmental footprint and promote sustainable development in the communities where it operates.

The resumption of drilling by Tullow Oil in Ghana's oilfields is a significant development that is expected to have a positive impact on the country's economy.

The successful resolution of the tax arbitration dispute and the company's commitment to increasing its investment in Ghana's oil sector are welcome developments that will contribute to the growth and development of the country's oil industry.