Ghana Extends Oil Licenses to 2040 Amid $2 Billion Investment

ACCRA, Ghana — The Government of Ghana has entered into a Memorandum of Understanding (MOU) with Tullow Oil plc, Kosmos Energy, PetroSA, Ghana National Petroleum Company (GNPC), and Explorco to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses until 2040. This agreement, announced on June 4, 2025, will facilitate up to 20 new wells in the Jubilee field, representing an investment of up to $2 billion.

The MOU aims to significantly increase gross 2P reserves and enhance ongoing oil production, which began in the Jubilee field in 2010. The extension aligns with the government’s goal to foster a stable and attractive investment climate for the energy sector. John Abdulai Jinapor, Ghana’s Minister for Energy and Green Transition, emphasized the MOU’s significance for the nation’s economic growth and job creation.

Jinapor stated, “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.”

The agreement allows for a commitment to increase gas supply from the Jubilee and TEN fields to approximately 130 million standard cubic feet per day, alongside introducing lower gas prices for Jubilee associated gas. Additionally, the MOU includes a reimbursement mechanism for gas sales and investment in GNPC and the Petroleum Commission’s technological capacity.

Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow, remarked, “This is a valuable step forward for the Government of Ghana, Tullow and our JV partners, underscoring our collective goal of responsible oil and gas development.”

As for next steps, the partnership plans to submit a Jubilee Plan of Development Addendum, enter new gas sales agreements, and seek parliamentary approval for payment security and license extensions by the end of the third quarter of 2025.

Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos, noted the importance of the MOU for future investments in Ghana’s oil and gas sector. He commented, “Extending the Ghana production licenses is essential for adding reserves and enabling long-term investment.”