Ghana extends oil licence deal with Tullow, Kosmos, PetroSA & GNPC at $2 billion

Ghana has cemented its standing as a major oil and gas producer in West Africa with the signing of a landmark Memorandum of Understanding (MoU) that extends production licences for the Jubilee and TEN oil fields through to 2040.

Announced on June 4, 2025, the agreement brings together key industry players—Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its subsidiary Explorco—under a unified commitment to deepen investment and development in the country's offshore energy sector.

The extension covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks, which host the Jubilee and TEN fields respectively. Under the deal, up to 20 new wells are expected to be drilled in the Jubilee field, supported by a projected investment of $2 billion over the lifespan of the licences.

Energy and Green Transition Minister John Abdulai Jinapor described the agreement as a “milestone for Ghana’s energy sector,” praising its potential to sustain economic growth and job creation.

Boosting Reserves, Expanding Gas Supply

The MoU outlines a range of strategic objectives aimed at maximizing returns from the Jubilee and TEN assets. These include:

A projected material increase in gross 2P (proven and probable) reserves

Enhanced gas supply—targeted at 130 million standard cubic feet per day (mmscf/d)

A reduced price for Jubilee-associated gas

A guaranteed reimbursement mechanism for gas sales

There is also a strong focus on institutional strengthening, with capacity-building initiatives planned for GNPC and the Petroleum Commission, particularly in the area of advanced energy technologies.

Industry Leaders Applaud the Agreement

Tullow Oil’s Interim CEO and CFO, Richard Miller, described the MoU as a testament to Ghana’s commitment to maintaining a stable and competitive petroleum sector.

“This agreement underscores the collaborative partnership between the government and joint venture stakeholders. It allows us to unlock greater production and reserves, while reaffirming Ghana’s place as a premier destination for long-term energy investment,” Miller said.

Kosmos Energy Chairman and CEO Andrew G. Inglis echoed the sentiment, calling the agreement a “strong vote of confidence” in Ghana’s regulatory and investment environment.

“The extension adds considerable reserves and creates a clear path for ongoing investment. We are excited to work with President Mahama’s administration to support the development of Ghana’s energy infrastructure,” Inglis noted.

Next Steps

While the MoU preserves all existing terms of the WCTP and DWT petroleum agreements, several formal steps lie ahead. These include:

Submission of an addendum to the Jubilee Plan of Development

Finalisation of gas sales agreements

Parliamentary approval of the payment security mechanism and licence extension, expected by Q3 2025

The deal marks a major forward leap in Ghana’s quest to balance economic development with energy sustainability, and sets the stage for transformative investments in the country’s petroleum future.