Ghana has reached an agreement with international oil companies to extend licences for its flagship offshore oil fields to 2040, unlocking up to $2bn in fresh investments aimed at boosting energy output and long-term economic growth.

Under a newly signed Memorandum of Understanding (MoU), the Government of Ghana, alongside partners Tullow Oil, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation (GNPC), and its exploration subsidiary Explorco, have agreed to extend the West Cape Three Points (WCTP) and Deepwater Tano (DWT) licences, which cover the prolific Jubilee and TEN oil fields.

The MoU paves the way for the drilling of up to 20 additional wells in the Jubilee field alone. According to the joint venture (JV) partners, the expansion is expected to deliver a material increase in gross proven and probable (2P) oil reserves.

“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,” Ghana’s Minister for Energy, John Abdulai Jinapor, said in an official statement.

“Extending the licences to 2040 demonstrates our commitment to fostering a stable and attractive investment climate, and ensures the continued production of oil, supporting our economic growth.”

The agreement signals a major vote of confidence in Ghana’s offshore energy sector and lays the groundwork for further steps, including the submission of an amended Jubilee Plan of Development (PoD), finalisation of new gas sales agreements (GSAs), and parliamentary approval of a payment security mechanism. These are expected to be completed before the end of the third quarter of 2025.

For Tullow Oil, which operates the Jubilee field, the deal is critical to securing long-term production and fiscal certainty in a challenging global energy environment.

“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,” said Richard Miller, Tullow’s Chief Financial Officer and Interim CEO.

“This extension and the fiscal stability of our contracts emphasises the opportunity Ghana represents to deliver additional value through production and reserves additions, providing greater long-term optionality and materiality to these core assets.”

Kosmos Energy, which has significant interests in both fields, also hailed the extension as a win for both Ghana and its shareholders.

“Extending the Ghana production licences 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 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.”

The Jubilee and TEN fields have been cornerstones of Ghana’s oil production since they came on stream in 2010 and 2016, respectively. The latest development is seen as critical to maintaining production momentum amid global efforts to secure stable energy supplies.

The West African country is seeking to strike a balance between attracting energy investments and meeting its transition goals under the Paris Climate Agreement. With recent production figures hovering around 170,000 barrels per day (bpd), Ghana is keen to leverage its hydrocarbon resources to finance development while diversifying its economy.