A memorandum of understanding has been signed with international oil firms and state-owned partners to extend two key offshore production licences until 2040, unlocking up to US$2billion in new investment aimed at bolstering crude output and gas supply.
The agreement was announced in a statement on Wednesday, June 4, 2025 and involves government, Tullow Oil Plc, Kosmos Energy Ltd., PetroSA, Ghana National Petroleum Corporation (GNPC) and its subsidiary Explorco.
In the memorandum, the joint venture partners are expected to drill up to 20 additional wells in the Jubilee field over the extended licences’ life. Beyond crude output, the deal aims to nearly double volumes of gas supplied from the two offshore fields to about 130 million standard cubic feet per day.
Gas pricing terms will also be revised downward, a shift likely to ease government’s mounting energy sector liabilities.
According to Energy Minister John Abdulai Jinapor, this memorandum of understanding marks a significant step forward in our nation’s energy sector.
All existing terms under current petroleum agreements for the WCTP and DWT blocks will remain unchanged, the parties confirmed. Tullow, which operates the Jubilee field, sees the extension as pivotal for its long-term growth in West Africa.
The partners are also committing to invest in GNPC and the Petroleum Commission to enhance their capacity, with a particular focus on applying advanced technologies to improve field operations and regulatory oversight.
Government is looking to extract more value from its hydrocarbon reserves even as it prepares for a longer-term energy transition. The extended licences provide a fresh window for the country to leverage its upstream potential while exploring pathways to decarbonisation.
Under this memorandum, the joint venture partners are expected to drill up to 20 additional wells in the Jubilee field over the extended licences’ life. This development is expected to significantly raise gross 2P reserves, supporting the country’s energy security and fiscal revenues.
