Tullow Oil Asked to Pay Ghana Taxes It Says Are ‘Without Merit’

Tullow

Accra, Ghana//- Tullow Oil Plc, which generates most of its revenue from Ghana, has been asked to pay additional taxes by the West African nation, a move the energy producer disputes.

The company made the disclosure in a filing in London, without giving financial details. “Tullow believes these assessments are without merit,” according to the statement. Tullow has been asked to pay about $300 million, UK’s City A.M. reported.

Ghana, which has sought a bailout from the International Monetary Fund, and is restructuring an estimated 467 billion cedis ($39.2 billion) of its public debt, earlier this month handed MTN Group Ltd. a $773 million back-tax bill.

Africa’s largest wireless carrier said it plans to challenge the levy. A spokeswoman for the Ghana Revenue Authority did not respond to calls and a text message seeking comment.

Ghanaian operations accounted for about 75% of Tullow’s $1 billion of revenue in the six months ended June 30, according to data compiled by Bloomberg. The company plans to spend $300 million on capital expenditure in the nation this year, according to the filing.

The West African nation, which lost access to international capital markets due to its ballooning debt and loan service costs, suspended interest payments on most of its external debt last month. The nation is seeking a $3 billion financing deal from the IMF.

Bloomberg