Ghana secures $2 billion investment in oil sector

Ghana has made significant progress towards strengthening its stance as a leading oil and gas producer in West Africa, after the signing of a Memorandum of Understanding (MoU) between the government and collaborative energy partners to extend the production licences for the Jubilee and TEN oil fields to 2040.

The agreement, revealed in a statement issued June 4, 2025, brings together Tullow Oil plc, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and Explorco, and will see the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences—home to the Jubilee and TEN fields—enhanced by 15 years.

As per the MoU terms, the partners have dedicated to drilling up to 20 additional wells in the Jubilee field, with investments amounting to $2 billion throughout the licensing period. The partners expect a material rose in gross 2P (proven and probable) reserves, while additional steps will be taken to improve gas supply and lower prices for customers.

Addressing the gathering after the signing, John Abdulai Jinapor, Ghana’s Minister for Energy and Green Transition, termed the agreement as a significant step forward.

He expressed that “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.”

John Abdulai Jinapor added that “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.”

The MoU Lays out core concepts improve the long-term development of the Jubilee and TEN fields. These include an increase in gas supply to 130 million standard cubic feet per day (mmscf/d), a decreased gas price for Jubilee-associated gas, and The implementation of a guaranteed compensation scheme for gas sales. Capacity-building for GNPC and the Petroleum Commission is also a priority, with a specific concentration on adoption advanced digital solutions.

Richard Miller,  Tullow Oil’s Interim Chief Executive Officer and Chief Financial Officer, described the deal as a “valuable step forward”emphasizing the “collaborative and constructive relationship” between the government and mutual venture partners. Richard Miller drew to attention that “ This extension and the fiscal stability of our contracts emphasizes the opportunity Ghana represents to deliver additional value through production and reserves additions.”

Andrew G. Inglis, Kosmos Energy Chairman and Chief Executive Officer,  cheered the MoU as a signal of increased assurance in the investment environment of our country Ghana. He noted that “This memorandum of understanding recognises the importance of oil and gas in Ghana and the desire of the new administration to create an attractive environment for new investment in the sector. 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.”

Andrew G. Inglis added that “This investment is expected to maximise 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.”

READ: Ghana’s inflation rate hit to 18.4% in May, marking a decline to its lowest point since February 2022