Gov’t strikes US$2bn deal with energy majors, extend oil licences to 2040
By Joshua Worlasi AMLANUÂ
Government has signed a memorandum of understanding with international oil firms and state-owned partners to extend two key offshore production licences until 2040, unlocking up to US$2billion in new investment aimed at bolstering crude output and gas supply.
The agreement, announced in a statement on Wednesday, June 4, 2025, involves government, Tullow Oil Plc, Kosmos Energy Ltd., PetroSA, Ghana National Petroleum Corporation (GNPC) and its subsidiary Explorco.
It covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks – home to the Jubilee and TEN fields which are among Ghana’s most productive oil assets.
Under this memorandum, the joint venture partners are expected to drill up to 20 additional wells in the Jubilee field over the extended licences’ life. This development is expected to significantly raise gross 2P reserves, supporting the country’s energy security and fiscal revenues.
Beyond crude output the deal aims to nearly double volumes of gas supplied from the two offshore fields to about 130 million standard cubic feet per day, according to a statement issued by the parties. Gas pricing terms will also be revised downward, a shift likely to ease government’s mounting energy sector liabilities.
A guaranteed payment mechanism for gas sales has also been included in the framework, a key step in addressing long-standing payment arrears between government and upstream operators.
“This memorandum of understanding marks a significant step forward in our nation’s energy sector,” Energy Minister John Abdulai Jinapor said in the statement.
He emphasised that the deal will reinforce Ghana’s commitment to a stable investment climate, sustain oil production and foster infrastructure development and job creation.
All existing terms under current petroleum agreements for the WCTP and DWT blocks will remain unchanged, the parties confirmed.
Tullow, which operates the Jubilee field, sees the extension as pivotal for its long-term growth in West Africa.
“This is a valuable step forward for government, Tullow and our JV partners,” said Richard Miller, the company’s interim CEO and CFO. “The extension and fiscal stability of our contracts emphasise the opportunity Ghana represents to deliver additional value through production and reserves additions.”
The partners are also committing to invest in GNPC and the Petroleum Commission to enhance their capacity, with a particular focus on applying advanced technologies to improve field operations and regulatory oversight.
Kosmos Energy, a key stakeholder in both fields, sees the deal as a strong signal of policy continuity and commercial opportunity under President John Mahama’s new administration.
“This memorandum recognises the importance of oil and gas in Ghana and the new administration’s desire to create an attractive environment for investment,” said Kosmos CEO Andy Inglis.
The next steps include submitting an addendum to the Jubilee Plan of Development, formalising new gas sales agreements and securing parliamentary approval for the licence extensions and payment security framework – targets the parties aim to meet by end of the third quarter.
Government is looking to extract more value from its hydrocarbon reserves even as it prepares for a longer-term energy transition. The extended licences provide a fresh window for the country to leverage its upstream potential while exploring pathways to decarbonisation.
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