Ghana Signs Landmark MoU to Extend Jubilee and TEN Oil Field Licenses Until 2040
In a major development for Ghana’s energy sector, the Government of Ghana and key oil and gas partners have signed a landmark Memorandum of Understanding (MoU) to extend production licenses for the Jubilee and TEN oil fields through 2040.
The agreement, hailed as a significant milestone, aims to secure long-term investment in the country’s petroleum sector and boost energy security. Parties to the MoU include Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its subsidiary, Explorco.
The MoU covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks—home to Ghana’s flagship Jubilee and TEN oil fields. Under the terms of the agreement, up to 20 new wells can be drilled in the Jubilee field, potentially attracting over $2 billion in investment over the life of the extended licenses. This is expected to significantly increase Ghana’s gross 2P (proven and probable) oil reserves.
Key Commitments in the MoU:
- Increase gas supply from the Jubilee and TEN fields to approximately 130 million standard cubic feet per day.
- Reduce the price of Jubilee-associated gas.
- Establish a guaranteed reimbursement mechanism for gas sales.
- Invest strategically in GNPC and the Petroleum Commission to build capacity using advanced technologies.
Crucially, all existing terms under the WCTP and DWT Petroleum Agreements remain unchanged. The next major step is the submission of a Jubilee Plan of Development Addendum, expected by the third quarter of 2025.
Energy Minister John Abdulai Jinapor described the MoU as a forward-looking agreement that strengthens Ghana’s energy future. “Extending these licenses to 2040 reaffirms our commitment to stable, long-term investment in the petroleum sector,” he said. “This MoU ensures the continuation of oil production, supports economic growth, and will help develop essential infrastructure and create jobs responsibly.”
Tullow’s Interim CEO, Richard Miller, praised the agreement as a model of strong collaboration between the government and industry. “This extension unlocks additional value for Ghana and our partners,” he said. “It demonstrates the country’s capacity to drive growth through strategic energy partnerships.”
Kosmos Energy Chairman Andy Inglis added that the agreement enhances investor confidence and strengthens the long-term viability of Ghana’s energy sector. “By extending production licenses, we’re maximizing field value and enabling economic development,” he said. “We look forward to continuing our collaboration with President Mahama and his administration to advance Ghana’s energy goals.”
