Terms of the MoU include approval to drill up to 20 additional wells on the Jubilee Field, representing an investment of up to $2 billion in Ghana over the duration of the licenses.
Among the principles covered in the MoU are:
- A commitment to work on ways of increasing the supply of gas from the two fields to about 130 MMcf/d;
- A lower gas price for Jubilee’s associated gas;
- A guaranteed reimbursement mechanism for gas sales; and
- Investment by the various parties in GNPC and the capacity of Ghana’s Petroleum Commission, with a special focus on the use of advanced technology.
Otherwise, all conditions for the licenses’ existing petroleum agreements will continue unchanged.
The next steps will be the submission for approval of a plan of development addendum for Jubilee; entering new fully termed gas sales agreements; and the submission for parliamentary approval of the payment security mechanism and licence extensions.
John Abdulai Jinapor, Ghana's Minister for Energy and Green Transition, said the MoU “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.”
