Tullow, Kosmos and partners agree to extend Ghana production licenses to 2040
Images: Tullow's FPSO Kwame Nkrumah, operating in Ghana's Jubilee field
The Government of Ghana, Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Company (GNPC) and Explorco have entered into a Memorandum of Understanding (MOU) to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses to 2040, which cover the Jubilee and TEN fields in Ghana.
The MOU includes approval to drill up to 20 additional wells in the Jubilee field, representing investment of up to $2 billion in Ghana over the life of the licenses. As a result of the extension, the JV partnership expects to realize a material increase in gross 2P reserves.
Following this MOU, are the submission for approval of a Jubilee Plan of Development (PoD) Addendum, entering into new fully termed gas sales agreements (GSA), and the submission for parliamentary approval of the payment security mechanism and license extensions planned before the end of the third quarter of 2025.
“This Memorandum of Understanding between the Republic of Ghana and the DWT and WCTP partners marks a significant step forward in our nation's energy sector," said the Honorable John Abdulai Jinapor, Ghana’s Minister for Energy. "Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate, and ensures the continued production of oil, supporting our economic growth."
“This is a valuable step forward for the Government of Ghana, Tullow and our JV partners, highlighting the collaborative and constructive relationship we all have in reaching our shared goal of building a better future for the people of Ghana, through responsible oil and gas development," added Richard Miller, Chief Financial Officer and Interim CEO of Tullow. "This extension and the fiscal stability of our contracts emphasizes the opportunity Ghana represents to deliver additional value through production and reserves additions, providing greater long-term optionality and materiality to these core assets.”
"Extending the Ghana production licenses is highly accretive, adding material reserves and enabling the partnership to continue investing in the country for the long-term," said Andrew G. Inglis, Chairman and CEO of Kosmos. "This investment is expected to maximize the value of the fields for the benefit of the country’s economic development and Kosmos’ shareholders. We look forward to working with President Mahama and his government to invest in and advance Ghana’s energy sector."
