Tullow Oil Share Discussion Threads

[xxnjr] 14/2/2023 12:16

Not so good news. RNS. About $700m of disputed tax claims

"TGL has received a revised corporate income tax assessment for $190.5 million from the GRA relating to the disallowance of loan interest for the fiscal years 2010 - 2020. Tullow has previously disclosed assessments by the GRA relating to the same issue; the revised assessment received in December 2022 supersedes all previous claims.

TGL has also received a new corporate income tax assessment and demand notice for $196.5 million from the GRA relating to proceeds received by Tullow during the fiscal years 2016 - 2019 under Tullow's corporate Business Interruption Insurance policy, previously referred to in Tullow's Trading Update on 25 January 2023.

Tullow has previously filed a request for arbitration in respect of a separate assessment for Branch Profits Remittance Tax of $320 million in 2021. A hearing in respect of this dispute is scheduled for October 2023."

At least we now know when the 1st tribunal hearing is.

Bit of background here
hTTps://www.ghanaweb.com/GhanaHomePage/NewsArchive/GRA-withdrew-MTN-s-773m-back-tax-claim-after-threats-Bloomberg-report-1712678

[badger36] 14/2/2023 11:23

It's always Tullow. Just shows doing business in Africa is never clear cut. Just like India it's official corruption is endemic. India did it with Nokia and they closed up and walked away from there where 90% of all business is associated with graft. Tim pot dictatorship in Africa in pay of Putin and Xe are nothing but thieves

[hojjat] 14/2/2023 10:39

Backdating tax will not be acceptable by any law.
They are trying to show something to IMF to get loans

[grupo] 14/2/2023 10:32

Https://www.myjoyonline.com/tullow-refers-almost-300m-tax-dispute-with-gra-to-international-arbitration/

[grupo] 14/2/2023 10:09

Dow Jones Newswires

Tullow Oil's Ghana Unit Files Arbitration Request Over Tax Dispute


Published: Feb. 14, 2023 at 2:35 a.m. ET



By Joe Hoppe

Tullow Oil PLC said Tuesday that its Ghana subsidiary has filed requests for arbitration with the International Chamber of Commerce in London over two disputed tax assessments from the Ghana Revenue Authority.

The London-listed oil-and-gas company said the two assessments--which total $387 million, along with penalties--breach its rights under its Petroleum Agreements.

The assessments relate to the disallowance of loan interest deductions for fiscal 2010 to fiscal 2020 and proceeds received by Tullow under its corporate business interruption insurance policy.

The company said it believes a resolution through international arbitration will bring certainty for stakeholders. The formal step of filing for arbitration notwithstanding, it plans to continue to engage with the government of Ghana with the aim of resolving the disputes on a mutually agreeable basis.

Write to Joe Hoppe at [e-mail]

[dealy] 14/2/2023 07:40

It sounds a bit like the uk where buy to let landlords can no longer deduct the interest expense

[valuehurts] 13/2/2023 20:28

This is an absolute steal here. The asymmetry of what we have is outstanding. If oil rallies we are looking at a stock that will behave like the thermal coal stocks over the last 18 months... just so utterly despised and prices like it's going out of business when in fact we have quite a few years of flexibility...

[blueclyde] 13/2/2023 18:48

Exactly and that NPV includes Kenya at 0 and all the other exploration assets at 0. Whilst everyone capitulates I am happy to buy here and wait.

[florenceorbis] 13/2/2023 14:24

EV is 4 times approx current share price it seems

blue, tend to agree with your view

Most analyst too believe it is substantially undervalued

[blueclyde] 13/2/2023 12:54

You may be right... But the assets are trading at such a huge discount that a 60p bid would be a huge win for the buyer and the sellers at this price. That makes it a no brainier at this price.

[badger36] 13/2/2023 11:08

People with sharper minds than us are stupid or or perhaps the stupid ones are the ones we see in the mirror Paying these clowns for presiding over a collapse in an era of booming oil prices and the chaos of the Capricorn fiasco

[blueclyde] 12/2/2023 13:46

I love how negative sentiment is here and how battered down the share price is. Couple of observations hedges are rolling off in May means they can capture upside of price increases. Commercialisation of gas seems huge opportunity and the new wells coming online also. Sentiment is so negative it over looks it is a 60k a day producer away from all this windfall tax nonsense and has some really interesting average that is I for free.

[subsurface] 09/2/2023 07:05

Thanks for posting XX good news

[xxnjr] 07/2/2023 20:30

This is potentially good news as it underpins future gas demand from TLW Ghana fields

hTTps://www.ghanaweb.com/GhanaHomePage/business/Ghana-Gas-signs-US-700-million-deal-for-second-gas-processing-plant-1707827

Can't copy and paste so you'll have to read it! (Tullow sales gas already gets processed at Atuabo GPP1). Building Atuabo GPP2 can only be a good thing.

[xxnjr] 07/2/2023 14:49

Unless something else dramatic happens, TLW seems more like a bet on the oil price.

If OP goes <$80/bbl, FCF (and debt reduction) starts to evaporate.
If OP goes >$100/bbl, FCF (and debt reduction) becomes useful.

Layered on top of that we have execution risk on Jubilee South East wells coming on stream in good order. Current management has a good record on Jubilee.

Also worth noting 48K of 61K bopd 2023 Guidance, or 77% is now Ghana.
And 37K of that 61K bopd, or 60% goes through 1 FPSO (Jubilee).

We'll get more insights when results come out.

[mcsean2164] 07/2/2023 14:33

Just when you think it can't get any worse...

[alfiex] 07/2/2023 11:04

We wish, but as always its being kept in its place

[michelle74] 07/2/2023 10:28

Come on 36

[mcsean2164] 07/2/2023 09:07

There goes 35p😢

[valuehurts] 06/2/2023 20:12

This is like buying a 1m rental property for 50k that you can rent out for 200k a year. Mortgage and property maintenance costs you a lot but next year your rent after all the costs will be 80k and the same the year after if all goes well. Very asymmetrical trade...

[valuehurts] 06/2/2023 19:54

Yeah I think so. But size appropriately. Hold for a couple of years. In the meantime go and play golf.

[kulvinder] 06/2/2023 16:13

Not heard much from Fizz these days. What a mistake here, should even have sold out at 52p when they announced the merger with CNE, seems no bottom, bit of a free fall happening as debt not seen to going down quick enough as the market would like to see.

[cool hand kev] 06/2/2023 12:51

Where’s the support?