Tullow Oil plc has made significant progress towards extending its Jubilee and TEN field licences in Ghana to 2040, with a new gas sales agreement now in place as the company finalises remaining contracts with government agencies.
The British oil company signed a Memorandum of Understanding (MoU) with the Government of Ghana in June, alongside partners Kosmos Energy, PetroSA, Ghana National Petroleum Corporation (GNPC) and Explorco. The framework agreement covers the West Cape Three Points and Deep Water Tano licences that contain Ghana’s flagship offshore oil assets.
Tullow’s latest trading update confirms that a new Jubilee Gas Sales Agreement has been executed, locking in gas pricing through to the end of the extended licences. The company is now working to complete the remaining elements, including payment security mechanisms for gas sales and an updated Plan of Development for Jubilee that requires parliamentary approval.
The MoU includes approval to drill up to 20 additional wells in the Jubilee field, representing potential investment of up to $2 billion in Ghana over the life of the licences. Partners also committed to increasing gas supply from the fields to approximately 130 million standard cubic feet per day.
Production from the Jubilee field has averaged roughly 61,000 barrels per day gross (23,900 net to Tullow) through October 2025, supported by the first of two new production wells drilled this year. The company began drilling the second well, J73 P, in early November and expects it to come onstream around year end.
TEN field production has averaged around 16,000 barrels per day (8,900 net), above expectations due to strong performance at the Ntomme and Enyenra reservoirs. Overall Floating Production Storage and Offloading (FPSO) vessel uptime at both fields has remained high, averaging 97 percent for the year.
Tullow has approved a five well drilling programme for 2026, including four committed wells and one optional producer, aiming to offset natural production declines and boost output. The company is also completing an Ocean Bottom Node seismic survey and integrating new 4D seismic data to improve reservoir modelling and guide future well design.
The company has focused on strengthening its balance sheet through asset sales. It completed the sale of its Kenyan interests for at least $120 million and its Gabonese assets for approximately $300 million net of taxes. Tullow is now engaging with bondholders and other investors regarding refinancing options ahead of a May 2026 bond maturity.
Total receivables owed by the Ghanaian government, including TEN development debt and overdue cash calls, stood at over $200 million net to Tullow as of October. The company is working closely with government agencies to resolve these outstanding payments.
Ian Perks, who became Tullow’s Chief Executive Officer in September 2025, outlined the company’s priorities in the trading update. He said his near term focus remains putting Tullow on a long term sustainable financial footing through maximising operational efficiency in Ghana, cost optimisation, and refinancing the capital structure.
Ghana’s Minister for Energy and Green Transition, John Abdulai Jinapor, said when the MoU was signed that extending the licences to 2040 demonstrates the country’s commitment to fostering a stable and attractive investment climate, ensuring continued oil production and economic growth.
Source: newsghana.com.gh
