The Institute of Economic Affairs (IEA) is calling on the Government of Ghana to immediately suspend the process of extending petroleum licences granted to Tullow Oil and its partners beyond their current 2036 expiration. This comes after reports of a signed Memorandum of Understanding (MoU) between the government and Tullow to push the licence term to 2040.
In a statement released on June 16, 2025, the IEA criticized the move as lacking transparency and accountability, and inconsistent with Ghana’s stated commitment to reform governance in the extractive sector. The think tank is urging the government to use the remaining years under the current agreement to restructure the country’s upstream petroleum framework in alignment with international best practices.
The IEA’s concerns also stem from Tullow’s fraught operational history in Ghana, marked by high-profile disputes and international arbitration. A key issue has been the Ghana Revenue Authority’s (GRA) assessment of a $320 million Branch Profit Remittance Tax covering 2012–2016. Tullow challenged the assessment at the International Chamber of Commerce (ICC) in London and won, with the tribunal ruling that the company was not liable and ordering Ghana to pay legal and tribunal costs plus interest.
The IEA contends that these precedents underscore the need for caution and a strategic reassessment of long-term agreements in Ghana’s petroleum sector.