Ghana's government, along with Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Corporation (GNPC), and Explorco, has signed a Memorandum of Understanding (MOU) to extend production licenses for the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks until 2040. These licenses cover the prolific Jubilee and TEN oil fields.
As part of the agreement, up to 20 new wells will be drilled in the Jubilee field, representing an estimated $2 billion investment over the license period. The extension is expected to significantly boost the joint venture's proven and probable (2P) reserves.
The next steps include submitting an addendum to the Jubilee Plan of Development (PoD) for approval, finalizing new gas sales agreements (GSA), and securing parliamentary approval for the payment security mechanism and license extensions by Q3 2025.
Ghana's Energy Minister, Honorable John Abdulai Jinapor, stated that the extension reflects the government's dedication to maintaining a stable investment environment and sustaining oil production to support economic growth.
Richard Miller, Tullow's CFO and Interim CEO, emphasized the partnership's role in Ghana's energy future, noting that the extended licenses and fiscal stability will enhance long-term value for both investors and the nation.
Kosmos Energy's Chairman and CEO, Andrew G. Inglis, highlighted the economic benefits for Ghana and shareholders, expressing eagerness to collaborate with President Mahama's administration to further develop the country's energy sector.