Ghana’s Parliament has ratified an extension of petroleum agreements covering the Jubilee and TEN oil fields to Dec. 31, 2040, granting long-term tenure to Tullow Oil plc while embedding a higher future stake for the state.
Under the revised terms, Ghana National Petroleum Corporation will increase its participating interest in the fields by an additional 10 percentage points from July 20, 2036, with joint venture partners diluted proportionately. The structure expands Ghana’s long-term equity share without requiring immediate fiscal outlay.
The agreement also resets gas supply arrangements. Tullow secured revised terms for Jubilee gas through the extended period at an escalating price of US$2.50 per mmbtu. A gas payment security mechanism was agreed with the government, alongside heads of terms for potential supply from TEN. The mechanism addresses delayed payments that have affected upstream cash flows in recent years.
Chief Executive Officer Ian Perks said the ratification “secures our long-term operating position, providing a runway for responsible resource development and a stable investment environment alongside the payment security for gas.” He added that the deal underpins continued investment in Jubilee and TEN.
The extension comes as Tullow consolidates its portfolio around Ghana after asset sales in Gabon and Kenya. In 2025, the company reported revenue of about US$847 million and free cash flow of roughly US$100 million, affected by lower oil prices late in the year and delays in receivables from the Government of Ghana.
The extension provides a medium-term production visibility for the country from its two largest offshore fields while gradually increasing sovereign participation. For Tullow, the reset offers contractual certainty as it advances new wells and targets 2026 production of 34,000 to 42,000 barrels per day, subject to oil price and operational risks.
Source: thebftonline.com
