The Government of Ghana and partners including Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Company (GNPC) and Explorco have signed a memorandum of understanding (MOU) to extend Ghana production licences to 2040.
The MOU will extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences, which cover the Jubilee and TEN fields in Ghana.
It paves the way for drilling up to 20 additional wells in the Jubilee field, signifying an investment of up to $2bn (20.49bn cedis) in Ghana across the licences’ lifespan.
The extension is set to substantially boost gross 2P (proved and probable) reserves for the joint venture partnership.
Key aspects of the MOU include a commitment to augment the supply of gas from the Jubilee and TEN fields to around 130 million standard cubic feet per day, a reduction in the price of Jubilee associated gas and a guaranteed reimbursement mechanism for gas sales.
Moreover, the agreement foresees investment in GNPC and the Petroleum Commission, emphasising the deployment of advanced technology.
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By GlobalDataThe existing terms of the WCTP and DWT Petroleum Agreements will remain effective without alteration.
The forthcoming steps following the MOU involve the submission of a Jubilee Plan of Development (PoD) Addendum, the establishment of new fully termed gas sales agreements (GSA), and the pursuit of parliamentary approval for the payment security mechanism and licence extensions, all projected to occur before the end of the third quarter of 2025.
Ghana’s Energy and Green Transition Minister, John Abdulai Jinapor, said: “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. Extending the licences to 2040 demonstrates our commitment to fostering a stable and attractive investment climate.
“This MOU will not only ensure the continued production of oil, supporting our economic growth, but also allow us to further develop our infrastructure and create more job opportunities for our citizens. We are dedicated to responsible resource management and look forward to a prosperous future fuelled by sustainable energy practices.”
In April this year, the International Tribunal for the Law of the Sea refused to suspend Ghana’s operations at the $4.9bn Tweneboa, Enyenra and Ntomme offshore oil project in disputed waters in the Atlantic.
