Ghana has taken a significant leap in strengthening its status as a leading oil and gas producer in West Africa by signing a Memorandum of Understanding (MoU) to extend production licences for the Jubilee and TEN oil fields until 2040.
The MoU, announced on June 4, 2025, unites key stakeholders including Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and Explorco. It provides for a 15-year extension of the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences, which cover the Jubilee and TEN fields.
Under the agreement, the partners commit to drilling up to 20 additional wells in the Jubilee field, backed by investments totaling up to $2 billion throughout the licence period. The extension is expected to significantly increase the gross 2P (proven and probable) reserves, enhance gas supply, and introduce measures to reduce costs for consumers.
Ghana’s Minister for Energy and Green Transition, John Abdulai Jinapor, described the MoU as a pivotal milestone for the country’s energy future. “Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate,” he stated. Jinapor emphasized that the agreement not only supports continued oil production and economic growth but also promotes infrastructure development and job creation. He highlighted the government’s dedication to responsible resource management and sustainable energy practices.
The MoU also sets out strategic principles for the long-term development of the Jubilee and TEN fields. These include increasing gas supply to approximately 130 million standard cubic feet per day (mmscf/d), reducing the gas price for Jubilee-associated gas, and implementing a guaranteed reimbursement mechanism for gas sales. Capacity-building initiatives for GNPC and the Petroleum Commission, with a focus on advanced technology, form another critical component of the agreement.
Richard Miller, Interim CEO and CFO of Tullow Oil, called the agreement a “valuable step forward,” praising the “collaborative and constructive relationship” between the government and partners. He emphasized that the licence extension and fiscal stability highlight Ghana’s potential to generate added value through increased production and reserves.
Andrew G. Inglis, Chairman and CEO of Kosmos Energy, welcomed the MoU as a sign of renewed investor confidence. He noted that the deal “recognizes the importance of oil and gas in Ghana” and reflects the new administration’s efforts to create an attractive investment environment. Inglis said the licence extension would add substantial reserves and enable continued long-term investment in Ghana’s energy sector, benefiting both the country’s economic development and Kosmos’ shareholders.
The MoU preserves all existing terms of the current WCTP and DWT petroleum agreements. Next steps include submitting an addendum to the Jubilee Plan of Development, finalizing gas sales contracts, and obtaining parliamentary approval for the payment security mechanism and licence extensions by the end of Q3 2025.
