Ghana signs major energy agreement to extend oil production licences to 2040

The government and key oil and gas partners have signed a significant Memorandum of Understanding (MoU). This agreement extends production licenses for the Jubilee and TEN oil fields until 2040.

The MoU is an important milestone for Ghana’s energy sector. It encourages continued investment and long-term development of petroleum resources. The signing involved the Government of Ghana, Tullow Oil plc, Kosmos Energy, PetroSA, GNPC, and its subsidiary Explorco.

The agreement covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks. These include the flagship Jubilee and TEN oil fields.

As part of this deal, partners can drill up to 20 additional wells in the Jubilee field. This could lead to a $2 billion investment over the extended license period. It is expected to significantly increase gross 2P reserves.

This will enhance Ghana’s long-term energy security and economic prospects. The MoU includes several key commitments:

- Increase gas supply from Jubilee and TEN fields to about 130 million standard cubic feet per day.
- Reduced gas price for Jubilee-associated gas.
- Guaranteed reimbursement mechanism for gas sales.
- Strategic investment in GNPC and Petroleum Commission capacity with advanced technologies.

All existing terms of the WCTP and DWT Petroleum Agreements remain unchanged. Next steps include submitting a Jubilee Plan of Development Addendum by Q3 2025.

Minister for Energy John Abdulai Jinapor praised the agreement as a boost for Ghana’s energy future. He stated that extending licenses to 2040 shows commitment to stable investments.

“This MOU ensures continued oil production,” he said, “supporting economic growth.” He also noted it would help develop infrastructure and create jobs responsibly.

Richard Miller, Interim CEO of Tullow, highlighted strong collaboration between government and industry players. He believes this deal unlocks additional value for both Ghana and investors.

“This extension emphasizes Ghana's opportunity to deliver more value through production,” he stated.

Kosmos Energy’s Chairman Andy Inglis emphasized the MoU enhances investor confidence in Ghana's energy resources. He noted that extending production licenses adds material reserves for long-term investment.

“This investment maximizes field value for economic development,” he added. “We look forward to working with President Mahama on advancing Ghana’s energy sector.”