Ghana has taken a major step towards reinforcing its position as a leading oil and gas producer in West Africa, following the signing of a Memorandum of Understanding (MoU) between the government and key energy partners to extend the production licences for the Jubilee and TEN oil fields to 2040.
The agreement, announced in a statement issued June 4, 2025, brings together Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and Explorco, and will see the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences—home to the Jubilee and TEN fields—extended by 15 years.
Under the terms of the MoU, the partners have committed to drilling up to 20 additional wells in the Jubilee field, with investments totalling up to $2 billion over the life of the licences. The partners expect a material increase in gross 2P (proven and probable) reserves, while new measures will also aim to boost gas supply and reduce costs to consumers.
Speaking after the signing, Ghana’s Minister for Energy and Green Transition, John Abdulai Jinapor, hailed the agreement as a turning point for the country’s energy future.
“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. Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate,” he said.
“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. We are dedicated to responsible resource management and look forward to a prosperous future fuelled by sustainable energy practices,” the Minister added.
The MoU outlines key principles to support the long-term development of the Jubilee and TEN fields. These include an increase in gas supply to approximately 130 million standard cubic feet per day (mmscf/d), a reduced gas price for Jubilee-associated gas, and the introduction of a guaranteed reimbursement mechanism for gas sales. Capacity-building for GNPC and the Petroleum Commission is also a priority, with a particular focus on the use of advanced technology.
Tullow Oil’s Interim Chief Executive Officer and Chief Financial Officer, Richard Miller, described the deal as a “valuable step forward” that underscores the “collaborative and constructive relationship” between the government and joint venture partners. “This extension and the fiscal stability of our contracts emphasizes the opportunity Ghana represents to deliver additional value through production and reserves additions,” he said.
Kosmos Energy Chairman and Chief Executive Officer, Andrew G. Inglis, welcomed the MoU as a signal of renewed confidence in Ghana’s investment climate. “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 in the sector. Extending the Ghana production licenses is highly accretive, adding material reserves and enabling the partnership to continue investing in the country for the long-term,” he noted.
“This investment is expected to maximise the value of the fields for the benefit of the country’s economic development and Kosmos’ shareholders. We look forward to working with President Mahama and his government to invest in and advance Ghana’s energy sector,” Inglis added.
The MoU maintains all existing terms of the current WCTP and DWT petroleum agreements. Next steps include submitting a Jubilee Plan of Development addendum, finalising gas sales agreements, and seeking parliamentary approval for the payment security mechanism and licence extensions by the end of the third quarter of 2025.
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