Tullow Oil Plc, alongside Kosmos Energy, PetroSA, Ghana National Petroleum Corporation (GNPC), and its subsidiary Explorco, has reached a new deal with the government of Ghana to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) oil licenses until 2040.
The agreement, which also covers the Jubilee and TEN fields, was sealed through the signing of a Memorandum of Understanding (MoU) that paves the way for the drilling of up to 20 new wells and additional investments totaling $2 billion over the life of the licenses.
According to the parties, the MoU outlines several principles aimed at supporting the sustained development of the Jubilee and TEN fields.
Among the key provisions are commitments to ramp up the supply of natural gas to around 130 million standard cubic feet per day (mmscf/d) and to provide a new pricing regime for associated gas from Jubilee.
A new gas sales agreement is also expected to be formalized soon, along with a reimbursement framework that will guarantee payments for gas deliveries.
The agreement will maintain the existing terms of the current petroleum agreements, with no changes to the legal structure of the WCTP and DWT licenses.
The parties stated that the next step will be the submission of an addendum to the Jubilee Plan of Development (PoD) for approval.
This will be followed by the conclusion of new gas sales agreements and parliamentary approval of the payment security mechanism and the license extensions, which are targeted for completion before the end of the third quarter of 2025.
The Ghanaian government explained that the deal would support the country’s efforts to remain a key player in West Africa’s oil and gas space.
Minister for Energy and Green Transition, John Abdulai Jinapor, noted that the extension signals a strong commitment to attracting long term energy investment.
“This Memorandum of Understanding between the Republic of Ghana and the DWT and WCTP partners marks a significant step forward in our nation’s energy sector,” said Jinapor. “Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate.”
He added that the deal will ensure continued oil production, support economic growth, create jobs, and strengthen national infrastructure.
“We are dedicated to responsible resource management and look forward to a prosperous future fueled by sustainable energy practices,” he stated.
Partners speak on deal potential
On his part, Tullow’s Interim CEO and CFO, Richard Miller, said the agreement reflects a constructive relationship between the government and its industry partners, while positioning Ghana to gain additional value from its natural resources.
“This is a valuable step forward for the Government of Ghana, Tullow and our JV partners,” Miller said. “It shows our shared goal of building a better future for the people of Ghana through responsible oil and gas development.”
He noted that the extended timeline and stable fiscal terms would allow the joint venture to extract greater value from the country’s reserves.
Kosmos Energy’s Chairman and CEO, Andy Inglis, also remarked that the deal fits into the government’s broader agenda of boosting investor confidence in Ghana’s energy sector.
He stated that the license extension will add material reserves and enable continuous investment in the country.
“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,” Inglis said.
He mentioned that Kosmos looks forward to partnering with the administration of President John Mahama to drive further energy sector growth.
Ghana’s Jubilee and TEN fields are among its most productive offshore assets, and a renewed investment plan is expected to boost production capacity and gas supply to local power plants.
