Tullow Oil plc has reached a framework agreement with the Government of Ghana to extend the licences for its Jubilee and TEN oil fields to 2040, while finalising related gas sales agreements and updates to the Plan of Development.
The Memorandum of Understanding (MoU) sets the stage for Tullow to continue its operations in Ghana for the next 15 years, but company officials stressed that the detailed contracts and development plans are still being finalized in collaboration with government agencies.
Tullow, which focuses on producing assets in Ghana, has seen strong operational momentum this year. Production from the Jubilee field averaged roughly 61,000 barrels per day (23,900 net to Tullow) up to October, supported by the first of two new 2025 production wells.
Drilling on the second well, J73-P, began in early November and is expected to come onstream around the end of the year.
The company has also approved a five-well 2026 drilling program, including four committed wells and one optional producer, aiming to offset natural declines in existing wells and boost overall output.
Meanwhile, TEN field production has averaged around 16,000 barrels per day (8,900 net), above expectations, driven by strong performance at Ntomme and Enyenra.
To support future operations, Tullow is completing an Ocean Bottom Node (OBN) seismic survey and integrating new 4D seismic data to improve reservoir modelling and guide well design. FPSO uptime for Jubilee and TEN has remained high, averaging 97% for the year.
Financially, Tullow has focused on cost optimisation and capital management. The company completed the sale of its Kenyan assets for at least $120 million and its Gabonese assets for approximately $300 million net of taxes. It is also engaging with bondholders and other private investors regarding refinancing options ahead of a May 2026 bond maturity.
As of October, total receivables owed by the Ghanaian government, including TEN development debt and overdue cash calls, stood at over $200 million net to Tullow. The company is working closely with the government to resolve these payments.
Ian Perks, CEO of Tullow since September 2025, highlighted the company’s near-term priorities: strengthening financial sustainability, maximising operational efficiency in Ghana, and securing agreements that will allow the company to maintain long-term production.
While the MoU signals a positive step for Ghana’s oil sector, the extensions and agreements will only come into effect once the final contracts and Plan of Development updates are fully approved and executed.
