Tullow Oil plunges after losing Ghanaian tax row

By the Editorial Team · Thursday, October 1, 2026

Tullow Oil’s shares fell nearly 50 percent after an international tribunal ruled in favor of Ghana in a $196.5 million tax dispute linked to the company's oil operations, allowing for potential penalties up to the full assessed amount. This judgment challenges Tullow’s financial position but is tempered by ongoing support from the Ghanaian government and maintained analyst confidence in the company’s future prospects.

Shares of Tullow Oil plunged nearly 50 percent following a legal ruling in favor of Ghana concerning a disputed tax liability related to the company’s oil operations in the West African nation. The London-listed energy firm’s stock dropped 47.4 percent, falling 9.25 pence to 10.25 pence per share after the arbitration decision was announced.

The dispute centered on a $196.5 million corporate income tax assessment by Ghana’s tax authority, which targeted proceeds Tullow received from a business interruption insurance policy dated between fiscal years 2016 and 2019. During this period, Tullow’s operations in Ghana were adversely affected by production and operational disruptions. The International Chamber of Commerce tribunal ruled that the tax assessment does not violate the company’s existing petroleum contracts with Ghana, a key argument Tullow had used in its defense. The ruling also opens the possibility of penalties up to 100 percent of the assessed tax amount.

Tullow Oil expressed disappointment with the outcome and indicated it would engage further with the Ghanaian government to determine its next steps. The company also faces an ongoing $190 million dispute with Ghana regarding the ability to offset loan interest against profits.

Despite the setback, analysts at Peel Hunt described the ruling as a significant blow to Tullow’s equity value but noted the Ghanaian government’s continued support for the country’s oil exploration and production sector. Peel Hunt maintained a buy rating on Tullow shares with a target price of 24 pence, reflecting confidence in the company’s medium-term prospects.

The Ghanaian finance ministry issued a statement affirming the government’s intent to implement the ruling to safeguard revenues owed to the nation while ensuring that Tullow remains capable of operating and investing in Ghana over the long term.

The sharp decline in Tullow’s shares coincided with broader market movements, as the FTSE 100 index closed down 0.3 percent at 10,606 points, marking its largest monthly loss since March. Investor sentiment was dampened by rising oil prices, bond yields, and concerns related to geopolitical tensions in the Middle East. Meanwhile, the mid-cap FTSE 250 index recorded a gain of 0.7 percent, closing at 24,540 points.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.