Ghana has signed a new Memorandum of Understanding (MoU) with key oil partners to extend production licences for the Jubilee and TEN oil fields until 2040. This deal secures a $2 billion investment to support drilling up to 20 new wells and expand the country’s energy production.
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The government finalized the agreement with Tullow Oil, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its subsidiary, Explorco. The MoU covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks, home to the Jubilee and TEN fields.
Key Benefits of the Deal:
- Boost in Gas Supply: Daily gas output from the two fields will increase to 130 million standard cubic feet.
- Lower Gas Prices: The cost of Jubilee-associated gas will decrease.
- Guaranteed Payments: A system will be set up to ensure payment for gas sales.
- Local Capacity Building: The deal will fund training and technology upgrades for GNPC and the Petroleum Commission.
- Legal Stability: All existing contract terms remain intact.
Next steps include submitting a revised development plan for the Jubilee field, finalising gas sales agreements, and gaining parliamentary approval by Q3 2025.
Leaders React
Energy and Green Transition Minister John Abdulai Jinapor called the agreement a major win for Ghana’s future.
“This MoU shows our dedication to a stable investment climate. It supports growth, creates jobs, and strengthens our energy security.”
Tullow’s Interim CEO, Richard Miller, highlighted the value of continued cooperation.
“This extension reflects strong collaboration and opens new opportunities for growth and value creation.”
Kosmos Energy CEO Andy Inglis added that the deal boosts investor confidence.
“Extending these licences enhances Ghana’s appeal and allows long-term investment in energy development.”
