Tullow Oil, the UK-based energy firm, has announced plans to restart drilling in Ghana‘s oilfields by May 2025, following the resolution of a long-standing $320 million tax arbitration dispute with the Government of Ghana (GoG). The settlement removes a significant financial burden and reinforces the stability of Tullow’s petroleum agreements in the country.
Tullow’s Chief Executive Officer, Rahul Dhir, welcomed the tribunal’s ruling, stating that it brings certainty to the company’s operations in Ghana. “We are delighted with the outcome, which affirms our position and removes a material overhang from our business. We have always had confidence in our petroleum agreements and the dispute resolution process,” he said.
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Dhir also expressed optimism about working closely with the Ghanaian government to resolve any remaining claims, allowing both parties to focus on maximizing value from the Jubilee and TEN fields.
Tullow has committed to expanding its investments in Ghana’s oil sector, pledging millions of dollars towards the development of new oil fields and the expansion of existing ones. This move is expected to boost Ghana’s oil production capacity, create jobs, and stimulate economic growth.
The Ghanaian government has welcomed Tullow’s decision, emphasizing its commitment to fostering a business-friendly environment to attract further investment in the energy sector.
In 2024, Tullow’s net production from the Jubilee oil field stood at 33.9 thousand barrels per day (kbopd), while the TEN project produced 10.2 kbopd net. The company successfully completed a drilling programme in the Jubilee field, bringing five new wells onstream six months ahead of schedule, with no safety incidents recorded.
Tullow Oil has also been recognized for its commitment to safety and environmental sustainability. The company has introduced initiatives to minimize its environmental footprint and support sustainable development in local communities.
