Ghana Secures $2bn Investment as Tullow, Kosmos Extend Jubilee, TEN Oil Licences to 2040
In a landmark move poised to reshape Ghana’s upstream oil landscape, the Government of Ghana has signed a Memorandum of Understanding (MOU) with Tullow Oil plc, Kosmos Energy, PetroSA, and state-owned entities GNPC and Explorco to extend key oil production licences for the Jubilee and TEN fields until 2040.
The deal, announced on June 4, outlines a $2 billion investment commitment from the joint venture (JV) partners over the lifetime of the extended licences, with approval to drill up to 20 new wells in the Jubilee field. It also sets the groundwork for significant gas sector reforms, including increased supply volumes and revised pricing mechanisms, aimed at deepening Ghana’s energy security and fiscal resilience.
“This Memorandum of Understanding… marks a significant step forward in our nation’s energy sector,” stated Hon. John Abdulai Jinapor, Minister for Energy and Green Transition. “Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate.”
The Jubilee and TEN fields, located offshore Ghana in the West Cape Three Points (WCTP) and Deep Water Tano (DWT) blocks, are among the country’s most strategic hydrocarbon assets, producing over 100,000 barrels of oil per day combined. The MOU signals renewed confidence in Ghana’s extractives sector under the new Mahama administration, which has prioritized economic stability and infrastructure development.
Key Terms of the MOU
Beyond the headline investment, the MOU introduces a series of structured reforms:
- Gas Supply Increase: A commitment to raise the supply of gas from the Jubilee and TEN fields to approximately 130 million standard cubic feet per day (mmscf/d), bolstering domestic generation capacity.
- Reduced Gas Pricing: A downward revision in the price of associated gas from the Jubilee field to ease pressure on power producers and consumers.
- Guaranteed Payment Mechanism: A new structure to assure timely reimbursement for gas sales, likely easing tensions over historical payment delays in the power value chain.
- Capacity Building: Investment in the institutional capabilities of GNPC and the Petroleum Commission, with emphasis on technology transfer and operational efficiency.
Tullow, the operator of the fields, hailed the agreement as a pivotal development. “This is a valuable step forward… highlighting the collaborative and constructive relationship we all have in reaching our shared goal,” said Richard Miller, Tullow’s Interim CEO and CFO.
Kosmos Energy CEO Andy Inglis added that the licence extension “is highly accretive, adding material reserves and enabling the partnership to continue investing in the country for the long-term,” while expressing readiness to partner closely with President John Mahama’s administration.
Market and Political Implications
The extension comes at a critical time for Ghana, as the country emerges from a protracted debt restructuring process and seeks to restore investor confidence. The energy sector—historically plagued by payment arrears, regulatory uncertainty, and infrastructure bottlenecks—has been a key flashpoint for policy reforms.
Analysts see the agreement as both a fiscal and political win for the government. The planned increase in oil and gas production is expected to boost royalty and tax receipts while reducing the reliance on imported fuels. Simultaneously, the reduced gas pricing aligns with public expectations for lower electricity tariffs and improved energy reliability.
However, the arrangement still requires legislative backing. The next steps include parliamentary approval for the payment security mechanism and formal ratification of the licence extensions, expected before Q3 2025 concludes. A Jubilee Plan of Development (PoD) Addendum and new gas sales agreements will also be submitted in the coming months.
Strategic Positioning and Net-Zero Targets
The deal also reinforces Tullow’s strategic focus on Ghana as its core asset. The company, listed in both London and Accra, has committed to achieving Net Zero on Scope 1 and 2 emissions by 2030 and has rolled out a “Shared Prosperity” strategy aimed at delivering tangible socio-economic benefits to host communities.
With the Jubilee and TEN fields accounting for the bulk of Tullow’s production, the extension significantly improves the firm’s reserve outlook and long-term valuation. Industry watchers anticipate upward revisions to the JV’s gross 2P (proven and probable) reserves in the next reporting cycle.
Ghana’s ambition to become a regional energy hub hinges on such long-term investments. Yet, questions remain about the operationalization of the MOU—particularly the viability of the payment security mechanisms in light of past fiscal pressures in the power sector.
Still, with clear intent from both the government and operators, the agreement appears to chart a pragmatic course for energy expansion underpinned by resource nationalism, fiscal reforms, and public-private collaboration.
