Ghana has signed a landmark agreement with key oil and gas partners to extend production licences for the Jubilee and TEN oil fields until 2040, in a move hailed as a major boost for the country’s long-term energy security and economic growth.
The Memorandum of Understanding (MoU), signed by the Government of Ghana, Tullow Oil, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its subsidiary Explorco, paves the way for billions in fresh investment and increased production from two of Ghana’s most important oil assets.
The deal covers the West Cape Three Points and Deep Water Tano blocks, which include the flagship Jubilee and TEN fields. It authorises the drilling of up to 20 new wells in the Jubilee field alone, representing a potential $2 billion investment over the extended licence period.
Energy Minister John Abdulai Jinapor described the agreement as a “significant step forward” for Ghana’s energy ambitions.
“Extending the licences to 2040 demonstrates our commitment to a stable and attractive investment climate,” Mr Jinapor said at the signing ceremony. “This MoU will ensure continued production, support economic growth, and create jobs, all while prioritising responsible resource management.”
The agreement includes commitments to increase gas supply from the fields to around 130 million standard cubic feet per day. It also includes a reduced gas price for associated Jubilee gas, a reimbursement mechanism for gas sales, and strategic investment in the capacity of GNPC and the Petroleum Commission to adopt advanced technologies.
Richard Miller, Interim CEO and CFO of Tullow, said the agreement showcases the strong partnership between the Ghanaian government and industry players.
“This is a valuable step forward. The extension and fiscal stability emphasise Ghana’s opportunity to deliver more production and reserves, creating greater long-term value for everyone involved,” he said.
Kosmos Energy’s CEO Andy Inglis echoed the optimism, noting that the deal signals a welcoming environment for energy investors.
“This MOU is highly accretive, it adds material reserves and reflects the administration’s commitment to supporting long-term investment. It’s an important signal to the global energy market,” Inglis said.
The current terms of the petroleum agreements remain unchanged, with the next phase involving a revised Plan of Development (PoD) for Jubilee, finalisation of new gas sales agreements, and parliamentary approval expected by the third quarter of 2025.
If successfully implemented, the agreement is expected to materially enhance Ghana’s energy self-reliance while bolstering infrastructure and employment in the sector.
