Ghana signs MoU with Jubilee, TEN fields partners to extend license to 2040

The Government of Ghana has partnered with Tullow Oil plc, Kosmos Energy, PetroSA, and the Ghana National Petroleum Corporation (GNPC). They announced a Memorandum of Understanding (MoU) to extend the West Cape Three Points and Deep Water Tano licences until 2040. These licences cover the Jubilee and TEN fields in Ghana.

Tullow Oil shared this information in a statement to JOYBUSINESS. The MoU allows for drilling up to 20 additional wells in the Jubilee field. This represents an investment of up to $2 billion over the life of the licences. The joint venture expects a significant increase in gross 2P reserves due to this extension.

The MoU outlines several key principles for developing the Jubilee and TEN fields. It includes a commitment to increase gas supply from these fields to approximately 130 mmscf/d. There will also be a reduced gas price for Jubilee associated gas. A reimbursement mechanism for gas sales is guaranteed as well.

Additionally, there will be investments in GNPC and the Petroleum Commission’s capacity using advanced technology. All existing terms and conditions of the West Cape Three Points and Deep Water Tano Petroleum Agreements remain unchanged.

Next steps include submitting a Jubilee Plan of Development (PoD) Addendum for approval. The partners will also enter new fully termed gas sales agreements (GSA). They plan to submit payment security mechanisms and licence extensions for parliamentary approval by late 2025.

Energy Minister John Jinapor commented on the MoU's significance for Ghana's energy sector. He stated that extending licenses until 2040 shows commitment to a stable investment climate. He believes this will support oil production, economic growth, infrastructure development, and job creation.

Richard Miller, CFO and Interim CEO of Tullow, called the MoU a valuable step forward. He emphasized their collaborative relationship aimed at responsible oil and gas development in Ghana. The extension highlights opportunities for increased production and reserves.

Andy Inglis, CEO of Kosmos Energy, noted that the MoU recognizes oil and gas's importance in Ghana. He highlighted that extending production licenses adds material reserves while enabling long-term investment in the country.