Tullow Oil PLC and its partners have signed a memorandum of understanding (MOU) with Ghana’s government for the extension of the West Cape Three Points (WCTP) and Deepwater Tano (DWT) offshore blocks, which contain the producing Jubilee and TEN fields.
The deal will extend the licenses to 2040. The initial license for WCTP took effect July 2004 while that of DWT took effect March 2006, according to information on the Petroleum Commission’s online register.
“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”, London-based Tullow said in an online statement. “As a result of the extension the JV partnership expects to realize a material increase in gross 2P [proven and probable] reserves”.
The MOU includes a pledge to raise gas production from Jubilee, which straddles both blocks, and TEN, in DWT, to about 130 million standard cubic feet a day.
Jubilee, discovered 2007 and put onstream 2010, averaged around 87,000 barrels of oil per day (bopd) gross in 2024. Last year five new wells – three producers and two injectors – became operational, according to Tullow.
Tullow operates Jubilee with a 38.98 percent stake. Kosmos Energy owns 38.61 percent, Ghana National Petroleum Corp. (GNPC) 19.69 percent and South Africa’s state-owned PetroSA 2.72 percent.
TEN, which consists of the fields Tweneboa, Enyenra and Ntomme, produced approximately 18,500 bopd last year, Tullow says on its website. TEN came online 2016.
Tullow is also operator in TEN with a 54.84 percent stake. Kosmos holds 20.38 percent, GNPC 20.95 percent and Petro 3.82 percent.
Also agreed for the extension of the licenses are a price reduction for associated gas from Jubilee, a guaranteed reimbursement mechanism for gas sales and “investment in GNPC and the Petroleum Commission’s capacity with a focus on the use of advanced technology”, Tullow said.
“All terms and conditions of the existing WCTP and DWT Petroleum Agreements remain in place and continue unchanged”, it added.
“The next steps, following this MOU, are the submission for approval of a Jubilee Plan of Development Addendum, entering into new fully termed gas sales agreements, and the submission for parliamentary approval of the payment security mechanism and license extensions planned before the end of the third quarter of 2025”.
Energy and Green Transition Minister John Abdulai Jinapor commented, “Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate”.
Tullow chief executive Richard Miller said, “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”.
To contact the author, email jov.onsat@rigzone.com
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