The Government of Ghana and its upstream oil partners—Tullow Oil plc, Kosmos Energy, PetroSA, Ghana National Petroleum Corporation (GNPC), and Explorco—have entered into a landmark Memorandum of Understanding (MoU) to extend the West Cape Three Points and Deep Water Tano petroleum licences until 2040.
The licences, which cover Ghana’s flagship Jubilee and TEN oil fields, were initially set to expire before the end of the decade. The extension signals renewed confidence in Ghana’s oil and gas sector and opens the door to significant new investments in exploration, production, and technology.
A statement released by Tullow Oil confirmed the agreement, describing it as a pivotal step in the long-term development of Ghana’s hydrocarbon assets.
$2bni and 20 new wells planned
Under the terms of the MoU, Kosmos , Tullow licences have secured approval to drill up to 20 new wells in the Jubilee field.
This expanded drilling programme is expected to channel as much as $2 billion in capital investment into the country over the life of the extended licences.
The partners also anticipate a “material increase” in gross 2P reserves—proven and probable oil and gas quantities—as a result of the extended development activities.
This, according to energy analysts, could significantly boost Ghana’s long-term energy output and government revenues.
Boosting production, gas supply, and local capacity
The MoU outlines several strategic objectives that go beyond simply extending licences.
These includes a commitment to boost gas supply from the Jubilee and TEN fields to approximately 130 million standard cubic feet per day (mmscf/d), a revised pricing model for Jubilee-associated gas, expected to make domestic power generation more affordable, a payment security mechanism to guarantee reimbursements for gas sales and capacity-building initiatives to strengthen GNPC and the Petroleum Commission, with an emphasis on deploying advanced technology in field operations.
Despite these new developments, the statement from Tullow Oil clarified that all existing terms and conditions in the original West Cape Three Points and Deep Water Tano petroleum agreements remain unchanged.
Plan of development addendum and parliamentary approval
The Jubilee and TEN partners revealed that the next phase will involve the submission of an updated Jubilee Plan of Development (PoD) Addendum for regulatory approval.
The partners will also work to finalise new gas sales agreements (GSAs) and seek parliamentary approval for the payment security mechanisms and licence extensions.
These steps are expected to be completed before the end of the third quarter of 2025.
Energy Minister hails agreement as game-changer
Minister for Energy and Green Transition, John Jinapor, praised the agreement as a major milestone in Ghana’s energy evolution.
“Extending the licences to 2040 demonstrates our commitment to fostering a stable and attractive investment climate,” he stated. “This MoU will not only ensure continued oil production to support economic growth, but also enable us to expand our energy infrastructure and create jobs.”
Minister Jinapor further emphasized the government’s dedication to responsible resource management and the development of a sustainable energy sector.
Tullow, Kosmos applaud MoU as strategic win
Richard Miller, Tullow Oil’s Chief Financial Officer and Interim Chief Executive Officer, described the MoU as a “valuable step” for all stakeholders.
“It reflects the collaborative and constructive relationships between the Government of Ghana, Tullow, and our joint venture partners,” he said.
“This agreement enhances Ghana’s long-term energy outlook by providing greater optionality and financial stability for critical national assets.”
Andy Inglis, Chief Executive Officer of Kosmos Energy, also lauded the MoU, noting that it highlights the vital role of oil and gas in Ghana’s economy and signals the government’s commitment to creating a favourable investment environment.
“Extending the Ghana production licences is highly accretive, adding material reserves and enabling the partnership to continue investing in the country for the long term,” Inglis remarked.
Stability and growth in Ghana’s energy sector
With the extension of Kosmos, Tullow licences, Ghana is poised to reap significant benefits—both in terms of sustained energy production and increased investment inflows.
The collaborative approach taken by the government and its private sector partners is being widely praised as a model for balancing national interest with investor confidence.
The MoU, if successfully implemented, is expected to cement the Jubilee and TEN fields as cornerstones of Ghana’s energy strategy well into the next two decades.
