Tullow Oil, the Ghana-focused oil producer, has lost an international arbitration over a $196.5 million tax bill in the country.
The International Chamber of Commerce tribunal ruled that Ghana's corporate income tax assessment does not breach Tullow's petroleum agreements with the government.
The bill relates to payouts Tullow received between 2016 and 2019 under its business interruption insurance, which covers lost income when operations are disrupted.
The tribunal also ruled that penalties of 100% attached to the assessment fall outside the contractual protections in those agreements.
That leaves Tullow without the shield it had hoped the agreements would provide against the penalties as well as the tax.
Tullow said it was disappointed with the decision.
It will consider its next steps after further talks with the Government of Ghana.
For a company whose entire producing business sits in Ghana, those talks will need a light touch.
