The Government, together with major oil and gas partners, has signed a landmark Memorandum of Understanding (MoU) to extend the production licences for the Jubilee and TEN oil fields through to 2040. This significant agreement marks a new chapter in Ghana’s energy sector, unlocking long-term investment opportunities and bolstering national energy security.
A Strategic Alliance for Growth
The MoU was signed between the Government of Ghana, Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its subsidiary, Explorco. The agreement covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks, home to the flagship Jubilee and TEN oil fields.
Under the agreement, the partners are set to drill up to 20 new wells in the Jubilee field, representing a $2 billion investment over the lifetime of the extended licences. This move is expected to significantly boost Ghana’s gross 2P reserves and reinforce the country’s position as a key player in Africa’s oil and gas landscape.
Key Commitments Under the MoU:
- Increase in gas supply from the Jubilee and TEN fields to 130 million standard cubic feet per day (mmscf/d)
- Reduction in the price of Jubilee-associated gas
- Establishment of a guaranteed reimbursement mechanism for gas sales
- Investment in capacity-building for GNPC and the Petroleum Commission, particularly in advanced technology adoption
Importantly, all existing terms under the WCTP and DWT petroleum agreements remain unchanged.
Next steps under the agreement include:Submission of a Jubilee Plan of Development (PoD) Addendum, Finalisation of new gas sales agreements and Parliamentary approval of the proposed payment security mechanism and the licence extensions, expected by Q3 2025
Government and Industry Reactions
Minister for Energy and Green Transition, Dr. John Abdulai Jinapor, lauded the agreement as a major step forward. He stated that extending the licences to 2040 demonstrates Ghana’s commitment to fostering a stable and attractive investment climate.
“This MoU will not only support economic growth but also expand our infrastructure and create more job opportunities for Ghanaians. It’s a commitment to responsible and sustainable energy development.”
Richard Miller, Interim CEO and CFO of Tullow, described the deal as a testament to strong collaboration between the government and industry stakeholders:
“This agreement reflects the constructive relationship we’ve built with Ghana. It highlights Ghana’s value as a long-term investment destination and ensures continued production and growth potential for all partners involved.”
Andy Inglis, Chairman and CEO of Kosmos Energy, echoed the positive outlook, stating:
“This MoU enhances investor confidence and underlines the importance of Ghana’s energy sector. Extending the licences enables further investment in the country and supports both economic development and shareholder value.”