Ghana has taken a major step toward cementing its position as a key oil and gas hub by signing a $2 billion memorandum of understanding (MoU) to extend production licenses for its flagship Jubilee and TEN oil fields through 2040.
The agreement, announced by the Ghanaian government, involves a consortium of energy partners including Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and GNPC’s subsidiary Explorco. It provides for a 15-year extension of licenses for the West Cape Three Points (WCTP) and Deepwater Tano (DWT) blocks, where the Jubilee and TEN fields are located.
As part of the deal, the partners will invest up to $2 billion over the license period, which includes plans to drill up to 20 new wells in the Jubilee field. The MoU also sets the stage for an increase in Ghana’s proven and probable oil reserves, expanded gas supply, and reduced consumer energy costs.
Ghana’s Minister of Energy and Green Transition, John Abdulai Jinapor – called the agreement a pivotal moment in the country’s energy journey.
The agreement outlines strategic objectives such as scaling gas supply to approximately 130 million standard cubic feet per day, lowering gas prices from Jubilee, and implementing a payment guarantee framework for gas sales. Additionally, the MoU places a strong emphasis on technological upgrades and capacity building for GNPC and Ghana’s Petroleum Commission.
Tullow Oil’s acting CEO, Richard Miller and Kosmos Energy CEO Andrew G. Inglis, highlighted the cooperative nature of the partnership and emphasized the potential for long-term value creation in Ghana’s energy sector.
The next steps under the MoU include submitting an amended development plan for the Jubilee field, finalizing gas sales agreements, and securing parliamentary approval for the license extension and payment mechanism. These steps are expected to be completed by the end of Q3 2025.
