Tullow, partners sign Ghana production license extension aimed at increasing gas supply

Tullow Oil plc and Ghana partners signed a memorandum of understanding (MoU) with the government to extend the West Cape Three Points (WCTP) and Deep Water Tano (SWT) licenses to 2024.

With extension of the licenses, which cover Jubilee and Tweneboa-Enyenra-Ntomme (TEN) fields in the Gulf of Guinea’s Tano basin, the partners will commit to increase the supply of gas from the fields to about 130 MMscfd. The agreement calls for a reduced price for associated gas at Jubilee and a reimbursement mechanism covering gas sales, the companies said in a joint release June 4.

The MoU includes approval to drill up to 20 additional wells in Jubilee field, representing investment of up to $2 billion in Ghana over the life of the licenses, Tullow and partner Kosmos Energy said in joint releases June 4.

The partners will submit for approval an addendum to the Jubilee development plan and await parliamentary approval for the extension plans.

Tullow is operator of the Jubilee unit area with 38.98% interest. Partners are Kosmos Energy (38.61%), Ghana National Petroleum Co. (GNPC) (19.69%), and PetroSA (2.72%).

Tullow also operates TEN fields with 54.84% interest. Partners are Kosmos (20.38%), GNPC (20.95%), and Petro SA (3.82%).