Parliament has formally approved the extension of two major petroleum agreements, securing the future of Ghana’s upstream oil operations and paving the way for an estimated $2 billion in new investments.
The approval, granted following the adoption of a report by the Energy Committee, extends the terms of the West Cape Three Points (WCTP) and Deepwater Tano (DWT) block agreements until December 31, 2040. The decision is aimed at revitalizing mature fields and ensuring the long-term sustainability of the nation’s hydrocarbon production.
The development unlocks a significant capital injection for drilling new wells and deploying essential subsea infrastructure, which is critical to arresting the natural production decline in the Jubilee and TEN fields.
Agreements and Amendments
The first amended agreement involves the government, the Ghana National Petroleum Corporation (GNPC), GNPC Exploration and Production Limited Company (Explorco), Tullow Ghana Limited, Kosmos Energy Ghana HC, Kosmos Energy Ghana Investments, and PetroSa Ghana Limited concerning the WCTP block.
The second approval pertains to an amendment extending the term of the Deepwater Tano (DWT) petroleum agreement among the same state entities and contractor parties.
Additionally, Parliament endorsed a master gas agreement designed to streamline gas sales and obligations among the government, GNPC, Explorco, Tullow, Kosmos, and PetroSa.
The agreements were initially presented to the House on December 19, 2024, and February 13, 2025, before being referred to the joint committees for review.
Justification for Extension
Presenting the committee’s report, Chairman Emmanuel Bedzrah outlined the strategic importance of the extension. He noted that retaining the current contractor parties was crucial, as their extensive operational knowledge of the Jubilee and TEN Fields ensures continuity and minimizes transition risks.
“A change in operatorship could lead to disruptions in production,” Mr. Bedzrah stated. “This extension preserves institutional memory and prevents the potential instability that comes with premature licence termination.”
The $2 billion investment commitment tied to the new framework was highlighted as a key factor in the decision. The funds are expected to stabilize oil output, enhance gas recovery, and ultimately maximize the economic life of the fields, leading to improved long-term revenue for the state.
Enhanced State Participation and Financial Gains
A significant feature of the amended agreements is the increase in state participation. The GNPC will acquire an additional 10 per cent interest in both blocks, effective July 20, 2036. This will raise the Corporation’s total participating interest to 22.5 per cent in the WCTP block and 25 per cent in the DWT block.
The extended field life is projected to deliver substantial financial returns to Ghana. The committee’s report estimates the state will gain approximately $374 million from increased production volumes and prolonged revenue flows, with an additional $255 million in realized gas savings.
Addressing Legacy Debt
In a move to resolve a long-standing financial hurdle, the agreement also introduces a mechanism to clear debts owed by the state for gas supplies. As of November 2025, GNPC’s arrears under the Jubilee Gas Sale Agreement (GSA) stood at $165.15 million, covering a period of 15 months.
To address this, contractors have proposed a corporate income tax (CIT) offset as a government-backed payment security guarantee for future gas sales. The committee endorsed this mechanism, describing it as a fiscally efficient and non-interest-bearing solution.
“Unlike commercial letters of credit or loans, this offset mechanism does not attract financing costs or introduce additional debt exposure,” the report clarified. It assured the House that, in compliance with the Petroleum Revenue Management Act (Act 815), the Ministry of Finance will pay any offset CIT amounts into the Petroleum Holding Fund within 60 days after the end of each fiscal quarter, ensuring a transparent and sustainable repayment process.
