The Government of Ghana has signed a memorandum of understanding (MoU) with key energy partners; Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Corporation (GNPC), and Explorco to extend two major offshore petroleum licences to 2040. The agreement marks a crucial step in strengthening the country’s energy sector and attracting long-term investment.
The extension covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences, which host the Jubilee and Tweneboa-Enyenra-Ntomme (TEN) oil fields. These fields have been central to Ghana’s crude oil production for over a decade.
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MoU plans
Under the MoU, the partners plan to drill up to 20 new wells in the Jubilee field, with an estimated total investment of US $2bn on over the extended licence period. The additional development is expected to significantly increase the consortium’s proved and probable (2P) reserves and contribute to the long-term sustainability of production.
The agreement also outlines a commitment to ramp up gas supply from the Jubilee and TEN fields to approximately 130 million standard cubic feet per day. In a move likely to benefit the domestic power sector, the price of Jubilee-associated gas will be reduced, with a guaranteed reimbursement mechanism introduced to ensure fair compensation for the producers.
Additionally, the MoU includes support for capacity building within GNPC and the Petroleum Commission, focusing on the integration of modern technology to enhance regulatory and operational efficiency. The existing terms of the WCTP and DWT Petroleum Agreements will remain intact. Energy and Green Transition Minister John Abdulai Jinapor welcomed the agreement, calling it a milestone for Ghana’s energy future.
“This MoU is a clear demonstration of Ghana’s commitment to maintaining a stable investment climate while promoting responsible resource management. It ensures continued production, supports economic growth, and creates more job opportunities for our citizens,” Jinapor said.
As part of the implementation roadmap, a revised Jubilee Plan of Development (PoD) will be submitted, alongside new gas sales agreements. Parliamentary approval for the proposed payment security mechanism and the licence extensions is expected before the end of the third quarter of 2025.
This development comes shortly after Ghana successfully defended its offshore oil operations at the US $4.9bn TEN project, following a legal challenge. In April, the International Tribunal for the Law of the Sea declined to halt Ghana’s activities in disputed maritime areas, providing greater legal clarity for ongoing exploration and production. The MoU is seen as a crucial step towards energy security and economic resilience, positioning Ghana to better harness its hydrocarbon resources in line with its green transition goals.
