REG - Tullow Oil PLC - MoU signed to extend Ghana production licences

Tullow OilAnnouncement

04/06/2025 07:00

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RNS Number : 3053L  Tullow Oil PLC  04 June 2025

The Government of Ghana, Tullow, Kosmos Energy, PetroSA, Ghana National
Petroleum Company (GNPC) and Explorco sign Memorandum of Understanding to
extend Ghana production licences to 2040

4 June 2025 - The Government of Ghana, Tullow Oil plc (Tullow), Kosmos Energy
(Kosmos), PetroSA, Ghana National Petroleum Company (GNPC) and Explorco are
pleased to announce that they have entered into a Memorandum of Understanding
(MOU) to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT)
licences to 2040, which cover the Jubilee and TEN fields in Ghana.

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 licences. As a result of the extension the JV partnership expects to
realise a material increase in gross 2P reserves.

A number of principles are covered within the MOU that will help underpin the
continued development of the Jubilee and TEN fields, including:

·      A commitment to work to increase in the supply of gas from the
Jubilee and TEN fields to c.130 mmscf/d

·      A reduced gas price for Jubilee associated gas

·      A guaranteed reimbursement mechanism for gas sales

·      Investment in Ghana National Petroleum Corporation (GNPC) and the
Petroleum Commission's capacity with a focus on the use of advanced technology

All terms and conditions of the existing WCTP and DWT Petroleum Agreements
remain in place and continue unchanged.

The next steps, following this MOU, are the submission for approval of a
Jubilee Plan of Development (PoD) Addendum, entering into new fully termed gas
sales agreements (GSA), and the submission for parliamentary approval of the
payment security mechanism and licence extensions planned before the end of
the third quarter of 2025.

Hon. John Abdulai Jinapor, Ghana's Minister for Energy and Green Transition,
commented:

"This Memorandum of Understanding between the Republic of Ghana and the DWT
and WCTP partners marks a significant step forward in our nation's energy
sector. Extending the licenses to 2040 demonstrates our commitment to
fostering a stable and attractive investment climate. This MOU will not only
ensure the continued production of oil, supporting our economic growth, but
also allow us to further develop our infrastructure and create more job
opportunities for our citizens. We are dedicated to responsible resource
management and look forward to a prosperous future fuelled by sustainable
energy practices."

Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of
Tullow, commented:

"This is a valuable step forward for the Government of Ghana, Tullow and our
JV partners, highlighting the collaborative and constructive relationship we
all have in reaching our shared goal of building a better future for the
people of Ghana, through responsible oil and gas development. 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."

Andy G. Inglis, Chairman and Chief Executive Officer of Kosmos, commented:

"This memorandum of understanding recognizes the importance of oil and gas in
Ghana and the desire of the new administration to create an attractive
environment for new investment in the sector. Extending the Ghana production
licenses is highly accretive, adding material reserves and enabling the
partnership to continue investing in the country for the long-term. This
investment is expected to maximize the value of the fields for the benefit of
the country's economic development and Kosmos' shareholders. We look forward
to working with President Mahama and his government to invest in and advance
Ghana's energy sector."

 

 CONTACTS
 Tullow Investor Relations                    Camarco (Media)

                                            (+44 20 3757 4980)
 ir@tullowoil.com (mailto:ir@tullowoil.com)

                                            Billy Clegg
 Matthew Evans

                                            Georgia Edmonds
 Rob Hayward

                                              Rebecca Waterworth

 

Notes to editors

Tullow is an independent energy company that is building a better future
through responsible oil and gas development in Africa. Tullow's operations are
focused on its core producing assets in Ghana. Tullow is committed to becoming
Net Zero on its Scope 1 and 2 emissions by 2030, with a Shared Prosperity
strategy that delivers lasting socio-economic benefits for its host nations.
The Group is quoted on the London and Ghanaian stock exchanges (symbol: TLW).
For further information, please refer to: www.tullowoil.com
(http://www.tullowoil.com/) .

 

Follow Tullow on:

LinkedIn: www.linkedin.com/company/Tullow-Oil
(http://www.linkedin.com/company/Tullow-Oil)

X: www.X.com/TullowOilplc (http://www.X.com/TullowOilplc)

 

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