The Government of Ghana has signed a Memorandum of Understanding (MOU) with key oil sector stakeholders to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences—home to the Jubilee and TEN fields—through to 2040.
The agreement paves the way for up to 20 additional wells to be drilled in the Jubilee field, representing a substantial $2 billion investment over the life of the extended licences.
Hon. John Abdulai Jinapor, Ghana’s Minister for Energy and Green Transition, hailed the MOU as a milestone for Ghana’s oil and gas industry.
“Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate.
“This MOU will not only ensure the continued production of oil, supporting our economic growth, but also allow us to further develop our infrastructure and create more job opportunities for our citizens.”
Hon. John Abdulai Jinapor, Ghana’s Minister for Energy and Green Transition
The MOU was entered into with Tullow Oil plc (Tullow), Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its subsidiary Explorco.
“We are dedicated to responsible resource management and look forward to a prosperous future fuelled by sustainable energy practices.”
Hon. John Abdulai Jinapor, Ghana’s Minister for Energy and Green Transition
The agreement includes a number of development principles aimed at enhancing production and securing long-term value from Ghana’s hydrocarbon resources.
Notably, the joint venture partners have committed to increasing gas supply from the Jubilee and TEN fields to approximately 130 million standard cubic feet per day (mmscf/d), along with a reduced price for Jubilee’s associated gas and a guaranteed reimbursement mechanism for gas sales.
Additionally, the MOU outlines plans to build local capacity within GNPC and the Petroleum Commission, particularly through the use of advanced exploration and production technologies.
The next procedural steps will involve submitting an addendum to the Jubilee Plan of Development (PoD), entering into fully-termed gas sales agreements (GSAs), and securing parliamentary approval for both the payment security mechanisms and licence extensions—actions expected before the end of Q3 2025.
Fiscal Stability and Confidence in Ghana’s Oil Sector
For Tullow Oil, a key operator of the Jubilee and TEN fields, the extension affirms Ghana’s attractiveness as a stable investment destination in Africa’s upstream petroleum space.
“This is a valuable step forward for the Government of Ghana, Tullow and our JV partners.
“This extension and the fiscal stability of our contracts emphasize the opportunity Ghana represents to deliver additional value through production and reserves additions.”
Richard Miller, Chief Financial Officer and Interim CEO of Tullow
According to Tullow, the licence extension is expected to result in a material increase in gross 2P (proved and probable) reserves, adding to the company’s long-term production and revenue outlook.
Kosmos Energy, another major stakeholder in the Jubilee and TEN fields, described the MOU as an endorsement of Ghana’s potential to anchor future investment in Africa’s energy sector.
“This memorandum of understanding recognizes the importance of oil and gas in Ghana and the desire of the new administration to create an attractive environment for new investment.
“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.”
Andy G. Inglis, Chairman and CEO of Kosmos
Kosmos reaffirmed its commitment to supporting Ghana’s economic development through continued capital investment, local participation, and infrastructure enhancement.
The extension of the licences also comes at a time when the government is seeking to balance increased domestic energy production with responsible and sustainable resource management.
As part of the agreement, GNPC and Explorco—its upstream technical arm—will benefit from technology transfer and capacity-building initiatives that aim to elevate Ghana’s local content participation in offshore oil and gas operations.
This MOU signals a broader push by President John Mahama’s administration to revive and restructure Ghana’s energy sector, ensuring it becomes a more viable pillar of economic transformation under the Ghana Energy Transition and Investment Plan.
The Jubilee and TEN fields have remained the backbone of Ghana’s oil production since first oil in 2010 and 2016, respectively.
With this extension, the fields are expected to maintain production through 2040, enhancing fiscal stability and economic planning capabilities.
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