Ghana has officially extended oil production licences for the critical Jubilee and TEN fields through to 2040, following a memorandum of understanding (MOU) signed by the Government of Ghana and partners including Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Company (GNPC), and Explorco.

The agreement covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences and paves the way for up to 20 new wells to be drilled in the Jubilee field, representing an investment of up to $2 billion (20.49 billion cedis) over the licence term.

The MOU also includes a commitment to boost gas supply from these fields to approximately 130 million standard cubic feet per day, reduce the price of Jubilee associated gas, and establish a guaranteed reimbursement mechanism for gas sales. Investment in advanced technology and capacity building for GNPC and the Petroleum Commission are also key parts of the deal.

Ghana’s Energy and Green Transition Minister, John Abdulai Jinapor, said:
“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. Extending the licences to 2040 demonstrates our commitment to fostering a stable and attractive investment climate.”

He added,
“This MOU will not only ensure the continued production of oil, supporting our economic growth, but also allow us to further develop our infrastructure and create more job opportunities for our citizens. We are dedicated to responsible resource management and look forward to a prosperous future fuelled by sustainable energy practices.”

The extension is expected to substantially increase proven and probable reserves for the joint venture. Next steps include submitting a Jubilee Plan of Development Addendum, negotiating new gas sales agreements, and seeking parliamentary approval for payment security and licence extensions, all anticipated before the end of Q3 2025.