IEA Demands Parliamentary Scrutiny of Tullow Oil Licence Extension Deal
The Institute of Economic Affairs (IEA) is demanding parliamentary scrutiny over government’s decision to extend Tullow Oil’s petroleum licences beyond their current expiry date of 2036, arguing the move requires legislative ratification.
According to the IEA, the extension of licences covering the West Cape Three Points and Deepwater Tano blocks until 2040—under a Memorandum of Understanding (MoU) signed between the government and Tullow—could constitute a material change to the original agreement ratified by Parliament, and therefore cannot proceed without legislative approval.
Speaking at an IEA roundtable, Barrister and Solicitor Victor Anku-Tsede emphasised that any attempt to extend the operational period of oil contracts must be subjected to the necessary constitutional processes. Citing the Supreme Court’s 2017 ruling in Banful and Another v. Attorney General and Another, Anku-Tsede maintained that even informal agreements between the Executive and foreign entities require parliamentary ratification when they materially alter existing commitments.
“In that case, the government had argued that there was no formal agreement or treaty between Ghana and the United States—only a note verbal,” Anku-Tsede noted. “Yet the Court held decisively that even such an instrument, despite its informal title, constituted an international agreement and therefore required ratification by Parliament.”
He stressed that the nomenclature used—be it MoU, addendum or understanding—does not negate its legal effect. “If, in substance, it extends the terms of a license already ratified by Parliament, then it too must be brought before this House,” he said. “Parliament originally gave its approval for the license with a timeline that runs until 2036. Any extension beyond that date isn’t just an administrative step; it’s a legal matter that requires fresh validation by Parliament.”
Anku-Tsede further underscored that constitutional oversight of the country’s natural resources cannot be compromised. “This isn’t about formality for its own sake,” he argued. “It goes to the heart of constitutional oversight. Our legal framework is built on the principle that the people’s representatives must have the opportunity to examine and, if necessary, improve the terms under which national resources are managed. Without that scrutiny, we risk sidelining the very accountability the Constitution demands.”
The IEA’s position adds to growing calls for transparency in Ghana’s upstream petroleum sector, as the country seeks to maximise value from its depleting hydrocarbon reserves amidst the global energy transition.
