Tullow Oil Lines Up Production Extension for Jubilee and TEN fields off Ghana
June 4, 2025
Tullow Oil and its partners have signed a memorandum of understanding (MoU) with the Government of Ghana to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses to 2040, which cover the Jubilee and TEN fields off the West African country.
The MoU has been signed between the Government of Ghana, Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Company (GNPC) and Explorco.
It 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.
A number of principles are covered within the MOU that will help underpin the continued development of the Jubilee and TEN fields, including a commitment to work to increase in the supply of gas from the Jubilee and TEN fields to c.130 mmscf/d, a reduced gas price for Jubilee associated gas, and a guaranteed reimbursement mechanism for gas sales.
Also, it provides for investment in Ghana National Petroleum Corporation (GNPC) and the Petroleum Commission's capacity with a focus on the use of advanced technology
All terms and conditions of the existing WCTP and DWT Petroleum Agreements remain in place and continue unchanged.
The next steps, 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. Extending the licenses 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,” said John Abdulai Jinapor, Ghana's Minister for Energy and Green Transition.
"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.
"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,” added Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow.
