GHANA STRENGTHENS OIL AND GAS SECTOR WITH MAJOR LICENCE AGREEMENT

Ghana has made a significant move to solidify its status as a top oil and gas producer in West Africa by signing a Memorandum of Understanding (MoU) with major energy stakeholders. The agreement will extend production licences for the Jubilee and TEN oil fields until 2040.

FPSO KWAME NKRUMAH
(Source: ghanaupstream.com)

Announced on June 4, 2025, the MoU includes Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and Explorco. It extends the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences—home to the Jubilee and TEN fields—by 15 years.

As part of the agreement, the partners have committed to drilling up to 20 additional wells in the Jubilee field, with projected investments reaching $2 billion throughout the licence period. The deal is expected to significantly increase proven and probable (2P) reserves and improve gas supply, while also lowering costs for consumers.

Energy and Green Transition Minister, John Abdulai Jinapor, described the agreement as a transformative moment for Ghana’s energy landscape.

“This MoU reflects Ghana’s determination to build a stable and investor-friendly energy environment,” he stated. “It will sustain oil production, drive economic growth, enhance infrastructure, and create more jobs. We remain focused on responsible resource management and a sustainable energy future.”

Key provisions of the MoU include expanding gas supply to around 130 million standard cubic feet per day (mmscf/d), reducing gas prices for Jubilee-associated gas, and introducing a payment security mechanism for gas sales. It also prioritizes capacity-building for GNPC and the Petroleum Commission, particularly in deploying advanced technologies.

Richard Miller, Interim CEO and CFO of Tullow Oil, emphasized the value of the agreement, highlighting the strong partnership between the government and joint venture members.

“The licence extension and fiscal stability reinforce Ghana’s potential for further value creation through increased production and reserves,” he said.

Kosmos Energy’s Chairman and CEO, Andrew G. Inglis, echoed this sentiment, calling the MoU a sign of renewed investor confidence.

“The agreement underlines the importance of Ghana’s oil and gas sector and the government’s commitment to attracting new investments. Extending the licences brings in significant reserves and positions the partnership for long-term investment,” he noted.

“We’re committed to working with President Mahama’s administration to further develop Ghana’s energy sector.”

The MoU retains the terms of the existing WCTP and DWT petroleum agreements. Upcoming steps include submitting an addendum to the Jubilee Plan of Development, concluding gas sales agreements, and securing parliamentary approval for both the payment security mechanism and licence extension by the end of Q3 2025.

Source: ghanaupstream.com

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