Tullow secures long-term extensions for Jubilee, TEN permits offshore Ghana

Ghana’s government has extended the offshore West Cape Three Points and Deep Water Tano Petroleum Agreements to the end of 2040, according to a Feb. 20 Tullow press release.

These cover the Jubilee and TEN fields, operated by Tullow Ghana. In addition, Ghana National Petroleum Corp.’s (GNPC) participation will rise by a further 10% interest, with the joint venture partners’ shares decreasing pro rata.

In addition, Tullow, acting on behalf of the partners, has successfully negotiated revised terms for the supply of gas from Jubilee through the close of the newly extended period at an escalating price of $2.50/MMbtu.

It has also agreed to a gas payment security mechanism and heads of terms agreement for the potential supply of gas from the TEN fields with the government.

Finally, Tullow has signed a sale and purchase agreement with T.E.N. Ghana MV25 BV to acquire the TEN FPSO Prof. John Evans Atta Mills for $205 million, again on behalf of the joint venture. This is set to be paid at the end of first-quarter 2027, pending regulatory approvals.

Upon completion, Tullow said it would maximize operational synergies with the adjacent Jubilee Field and pursue further cost efficiencies to support the continued development of both fields.

The other JV partners are GNPC, GNPC Explorco, Kosmos Energy and PetroSA.

“The acquisition of the FPSO will deliver material cost savings by removing the annual lease cost and resetting our fixed costs at the TEN fields," Tullow CEO Ian Perks said. “By extending the economic life and removing the annual lease cost, we will create additional free cash flow potential for the company beyond 2027.

Gross production from Jubilee averaged about 60,900 bbl/d of oil last year, with TEN delivering about 16,000 bbl/d, according to the company's full-year 2025 results statement. Interpretation continues of towed streamer 4D seismic and ocean-bottom node seismic surveys that were conducted last year over the two fields.

The new reservoir insights should support optimized well design and placement in the current drilling program and identification of targets for future campaigns, Tullow said.