• Tullow and Kosmos plan to drill 20 new wells under extended field licenses

• $2 billion investment aims to offset declining reserves and raise output

• Deal includes gas pricing reforms and targets 130 million cubic feet daily

Tullow Oil and Kosmos Energy plan to invest $2 billion to drill up to 20 new wells in Ghana, under a new agreement with the Ghana National Petroleum Corporation (GNPC). The deal, disclosed on June 4 by local media, extends licenses for the Jubilee and TEN offshore oil fields through 2040.

The initiative seeks to maintain and increase Ghana’s crude production amid declining reserves. According to the Public Interest and Accountability Committee (PIAC), Ghana produced 48.2 million barrels of oil in 2023, down from 51.7 million in 2022.

With this new investment, the operators aim to expand the country’s proven and probable crude reserves, currently estimated at 0.66 billion barrels, which are expected to remain economically viable for about 20 years in the absence of new discoveries.

“The extension and fiscal stability of our contracts highlight the opportunity Ghana presents to create added value through increasing production and reserves,” said Richard Miller, interim CEO of Tullow. He emphasized the long-term importance of these assets.

In addition to crude output, the partners, Tullow, Kosmos, PetroSA, and Explorco, aim to scale up natural gas production to 130 million cubic feet per day. The agreement includes a reimbursement system for gas sales to producers and lower associated gas prices to reduce costs for domestic consumers.

These measures are expected to enhance the long-term viability of Ghana’s key oil assets, which generated $1.3 billion in revenue in 2024, a slight increase from the previous year. The development marks a significant return of investment to a sector that has seen limited activity since 2018.

The operators must now submit an updated development plan for parliamentary approval.