Former Speaker of Parliament, Professor Aaron Mike Oquaye, has called on the government to exercise caution when renewing the operating licenses of Tullow Oil Ghana.
He warns that making hasty decisions could further expose the nation to financial and contractual risks within the petroleum sector.
During his address at the Institute of Economic Affairs (IEA) Policy Dialogue in Accra, Prof. Oquaye referenced the recent arbitration ruling favoring Tullow Oil as a crucial reminder for increased vigilance in managing Ghana’s natural resource agreements.
“The recent arbitration award by the ICC in the case of Tullow versus the Republic of Ghana in London should serve as a significant lesson for us,” he cautioned.
“Notably, our agreements with them permit such occurrences. Having won their case, we are now obligated to cover Tullow’s costs.”
In early January 2025, Tullow Oil achieved a legal victory in its tax dispute with the Ghana Revenue Authority (GRA) at the International Chamber of Commerce Tribunal.
This decision exempted the company from a $320 million back tax assessment issued by the GRA; a ruling that has reignited discussions regarding the robustness of Ghana’s petroleum agreements and fiscal oversight mechanisms.
Prof. Oquaye expressed his concern that, despite the arbitration result, Tullow has indicated a second case related to another tax assessment while simultaneously claiming operational losses.
“Amidst this situation, Tullow, which is not liable to pay us anything, now claims to have incurred losses over the past year,” he remarked.
“Naturally, if a company reports losses, anyone with vested interests should prepare for the possibility of receiving nothing.”
He raised concerns about the timing of Tullow’s reported request for a contract renewal, cautioning that Ghana should not hastily enter into new agreements without first addressing existing deficiencies.
“While pursuing this, they have unexpectedly requested the government to renew their contract, which is set to expire in approximately ten or eleven years,” he emphasized.
They have now received a memorandum of understanding. I would like to urge the government not to proceed any further.
Prof. Oquaye emphasized that this situation highlights the necessity for transparency, improved contract management, and a thorough evaluation of Ghana’s petroleum agreements to avert similar financial challenges in the future.
“We wish to make this point clear,” he stated, “so that we can all recognize the importance of examining this matter and taking appropriate action.”
