Ghana extends oil licences to 2040 in $2b deal
Ghana has signed a landmark agreement with key oil and gas partners to extend production licences for the Jubilee and TEN oil fields to 2040, marking a major step toward securing the country’s long-term energy future.
The Memorandum of Understanding (MoU) was signed between the Government of Ghana, Tullow Oil, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its subsidiary Explorco. It covers two critical offshore blocks — West Cape Three Points (WCTP) and Deep Water Tano (DWT) — home to Ghana’s flagship oil fields.
Under the agreement, the partners are authorized to drill up to 20 new wells in the Jubilee field, representing a potential investment of $2 billion. The deal also outlines key commitments, including:
A gas supply increase to 130 million standard cubic feet per day
Reduced pricing for Jubilee-associated gas
A guaranteed reimbursement mechanism for gas sales
Strategic investment in the GNPC and the Petroleum Commission
Minister for Energy and Green Transition, John Abdulai Jinapor, hailed the MoU as a milestone for the sector, saying that it demonstrates Ghana’s commitment to a stable and attractive investment climate and would support economic growth, infrastructure, and job creation.
Tullow Oil’s Interim CEO and CFO, Richard Miller, welcomed the agreement as a sign of constructive collaboration.
“This is a valuable step forward, highlighting the strong partnership between the government and industry,” he said.
Kosmos Energy’s Chairman and CEO, Andy Inglis, said the agreement signals investor confidence in Ghana’s energy potential.
“Extending these licences creates long-term value for both the country and our shareholders. It reflects the new administration’s commitment to encouraging sustainable investment in oil and gas,” he noted.
All existing terms under the WCTP and DWT Petroleum Agreements remain unchanged. Next steps include submitting a Jubilee Plan of Development Addendum, finalizing new gas sales agreements, and seeking parliamentary approval for the licence extensions and payment security mechanism by the end of Q3 2025.
The agreement is expected to strengthen Ghana’s energy security and solidify its position as a key player in the West African oil and gas industry.
