The Government of Ghana, in partnership with Tullow Oil plc, Kosmos Energy, PetroSA, Ghana National Petroleum Corporation (GNPC), and Explorco, has announced the signing of a Memorandum of Understanding (MoU) to extend the West Cape Three Points and Deep Water Tano licences — covering the Jubilee and TEN oil fields — to 2040.
This development was confirmed in a statement issued by Tullow Oil to JOYBUSINESS.
Under the MoU, the partners have secured approval to drill up to 20 additional wells in the Jubilee field, representing a potential investment of up to $2 billion in Ghana throughout the life of the licences. The extension is expected to result in a significant increase in gross 2P reserves for the joint venture.
Key Provisions of the MoU
The MoU outlines several principles to support the continued development of the Jubilee and TEN fields, including:
Commitment to increase gas supply from the Jubilee and TEN fields to approximately 130 million standard cubic feet per day (mmscf/d)
A reduced gas price for Jubilee-associated gas
A guaranteed reimbursement mechanism for gas sales
Investment in GNPC and the Petroleum Commission’s capacity, focusing on advanced technology use
The statement added that all existing terms and conditions of the West Cape Three Points and Deep Water Tano Petroleum Agreements remain unchanged.
Next Steps for the Partners
Following the MoU, the partners will proceed with submitting a Jubilee Plan of Development (PoD) Addendum for approval, entering new fully termed gas sales agreements (GSAs), and seeking parliamentary approval for the payment security mechanism and licence extensions. These steps are expected to be completed before the end of the third quarter of 2025.
Government and Partners Respond
Minister for Energy and Green Transition, John Jinapor, described the MoU as a significant milestone for Ghana’s energy sector.
“Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate,” he said.
He emphasized that the extension would not only support continued oil production and economic growth but also facilitate infrastructure development and job creation for Ghanaians.
“We are dedicated to responsible resource management and look forward to a prosperous future fueled by sustainable energy practices,” Minister Jinapor added.
Tullow Oil’s Chief Financial Officer and Interim Chief Executive, Richard Miller, called the MoU a valuable step for the government, Tullow, and its joint venture partners.
“Our collaborative and constructive relationship reflects our shared goal of building a better future for the people of Ghana through responsible oil and gas development,” he said.
Miller further noted that the licence extension and fiscal stability emphasize Ghana’s opportunity to generate additional value through increased production and reserves, providing long-term benefits from these core assets.
Kosmos Energy CEO Andy Inglis also praised the MoU, highlighting the importance of oil and gas to Ghana’s future and the administration’s commitment to attracting new investments in the sector.
“Extending the Ghana production licenses is highly accretive, adding material reserves and enabling the partnership to continue investing in the country for the long term,” he said.