The Tullow Oil Ghana License Extension has been formally secured after Ghana’s Parliament ratified the renewal of petroleum agreements covering the Jubilee and TEN fields.
The development extends Tullow’s West Cape Three Points and Deep Water Tano Petroleum Agreements to 31 December 2040, reinforcing the company’s long-term operational footprint in the country.
In a statement, Tullow Oil Plc confirmed that the ratification marks a significant milestone in its partnership with Ghana. The agreements cover operations in the prolific Jubilee and TEN offshore oil fields, two of the country’s most strategic hydrocarbon assets.
Long-Term Stability and Investment Commitment
Commenting on the development, Tullow’s Chief Executive Officer, Ian Perks, described the ratification as a turning point that strengthens investor confidence and ensures continuity in operations.
“The ratification of these agreements secures our long-term operating position, providing a runway for responsible resource development and a stable investment environment alongside the payment security for gas.”
Perks emphasised that the extension underpins Tullow’s sustained commitment to Ghana and creates the certainty required for ongoing investment in its core producing assets.
He noted that the outcome reflects close collaboration between the joint venture partners, including the Ghana National Petroleum Corporation (GNPC), and the Government of Ghana.
Extended Tenure to 2040
Under the ratified terms, the petroleum agreements have been extended to the end of 2040, offering nearly two additional decades of operational certainty.
This timeline provides a long planning horizon for capital investment, drilling programmes, and infrastructure upgrades in the Jubilee and TEN fields.
A notable feature of the extension is an adjustment to equity participation. From 20 July 2036, GNPC’s share in the fields will increase by a further 10 percent interest. This increment will be offset by a proportional reduction in the stakes held by the joint venture partners.
The arrangement signals a gradual enhancement of Ghana’s direct participation in its offshore oil assets while maintaining a framework that continues to attract international expertise and investment.
Revised Gas Supply Terms
Beyond the tenure extension, Tullow and its joint venture partners have also secured revised commercial terms for gas supply from the Jubilee field.
The agreement provides for the supply of gas through the extended period at an escalating price of $2.50 per million British thermal units (mmbtu).
The revised pricing framework is accompanied by a gas payment security mechanism agreed with the Government of Ghana.
The introduction of payment security is expected to mitigate historical challenges related to delayed payments, thereby strengthening cash flow reliability for the partners and enhancing operational stability.
In addition, heads of terms have been agreed for the potential supply of gas from the TEN fields, broadening the scope of domestic gas availability.
This development could play a key role in supporting Ghana’s power generation sector, which relies significantly on natural gas for electricity production.
Strategic Importance of Jubilee and TEN
The Jubilee field, discovered in 2007, marked a transformative moment in Ghana’s oil industry and remains one of West Africa’s flagship offshore developments. The TEN (Tweneboa, Enyenra and Ntomme) fields have similarly contributed to Ghana’s hydrocarbon output since first oil in 2016.
By securing the extension of the West Cape Three Points and Deep Water Tano Petroleum Agreements, Tullow and its partners ensure that these assets continue to deliver production, revenue, and energy supply over the long term.
For Ghana, the agreement balances the need for foreign investment with increasing national participation through GNPC’s enhanced stake. For Tullow, it provides a predictable regulatory and commercial environment necessary for sustained development.
The parliamentary ratification sends a strong signal about Ghana’s commitment to maintaining a stable and attractive investment climate in the upstream oil and gas sector. The extended agreements, combined with structured gas supply arrangements, aim to support both hydrocarbon production and domestic energy security.
Perks underscored that the milestone not only secures Tullow’s operational future but also reinforces the partnership’s shared vision for responsible resource development.
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