ACCRA: The Government of Ghana has signed a memorandum of understanding with energy companies to extend key offshore oil licenses until 2040, a move expected to drive investment and increase reserves in the country’s energy sector.
The agreement covers the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses, which include the Jubilee and TEN fields. The deal allows for the drilling of up to 20 new wells in the Jubilee field, with investments projected to reach $2 billion. The extension is expected to materially increase gross 2P reserves for the joint venture partnership.
The MOU outlines several key measures to support the continued development of Ghana’s oil and gas industry, including an increase in gas supply from the Jubilee and TEN fields to approximately 130 million standard cubic feet per day (mmscf/d), a reduced gas price for Jubilee-associated gas, and a reimbursement mechanism for gas sales. It also includes provisions for investment in the Ghana National Petroleum Corporation and the Petroleum Commission, with a focus on advanced technology.
Minister for Energy and Green Transition John Abdulai Jinapor hailed the agreement as a “significant step forward” for Ghana’s energy sector, emphasizing its role in fostering economic growth, infrastructure development, and job creation.
Tullow Oil interim CEO Richard Miller and Kosmos Energy CEO Andy Inglis also welcomed the extension, citing the opportunity to enhance production and reserves while creating a stable investment climate.
The next steps include parliamentary approval for the payment security mechanism and license extensions, submission of a Jubilee Plan of Development addendum, and finalizing new gas sales agreements. Officials expect these processes to be completed by the third quarter of 2025.