Ghana has sealed a major energy sector breakthrough, signing a Memorandum of Understanding (MoU) with key upstream partners to extend production licences for the Jubilee and TEN oil fields until 2040.
The agreement, described by government and industry leaders as transformative, involves the Government of Ghana, Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its subsidiary, Explorco. It covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks, home to Ghana’s flagship oil assets.
“This Memorandum of Understanding between the Republic of Ghana and the DWT and WCTP partners marks a significant step forward in our nation’s energy sector,” said Minister for Energy and Green Transition, John Abdulai Jinapor.
“Extending the licences to 2040 demonstrates our commitment to fostering a stable and attractive investment climate.” He added.
At the heart of the agreement involves a plan to drill 20 new wells in the Jubilee field alone, projected to unlock material gross 2P reserves and deepen Ghana’s energy security. The drilling campaign is expected to mobilise approximately $2 billion in investment, boosting the economy and further cementing the sector’s centrality to Ghana’s growth.
The MoU also features a series of strategic commitments. These include gas supply ramp-up to 130 million standard cubic feet per day (mmscf/d) from Jubilee and TEN oil fields, reduced gas price for Jubilee-associated gas, a guaranteed payment mechanism to secure gas sales revenue, and capacity-building investments for GNPC and the Petroleum Commission.
Despite these changes, the existing fiscal and legal terms of the WCTP and DWT Petroleum Agreements remain unchanged, preserving contract stability for investors.
“This is a valuable step forward for the Government of Ghana, Tullow, and our JV partners,” said Richard Miller, Interim CEO and CFO of Tullow.
“This extension and the fiscal stability of our contracts emphasise the opportunity Ghana represents to deliver additional value through production and reserves additions.” He added.
Investor Confidence on the Rise
The agreement is expected to unlock fresh momentum for Ghana’s oil and gas sector, which has faced investment headwinds in recent years. For international stakeholders, the 2040 licence extension is a clear signal that Ghana remains an attractive, dependable partner in energy development.
“This memorandum of understanding recognises the importance of oil and gas in Ghana and the desire of the new administration to create an attractive environment for new investment. Extending the Ghana production licenses is highly accretive and expected to maximise the value of the fields for the benefit of the country’s economic development and Kosmos’ shareholders,” said Andy Inglis, Chairman and CEO of Kosmos Energy.
Next Steps Toward Execution
The path forward includes the submission of a revised Jubilee Plan of Development (PoD) Addendum, the finalisation of new gas sales agreements, and parliamentary approval for the payment security mechanism and licence extensions, all targeted for completion by Q3 2025.
“This MoU will not only ensure the continued production of oil, supporting our economic growth, but also allow us to further develop our infrastructure and create more job opportunities for our citizens,” said Energy Minister John Jinapor.
