Tullow Oil Secures New Gas Deal and Plans Jubilee and TEN License Extensions in Ghana Through 2040
Tullow Oil is advancing plans to extend the operating licenses for Ghana’s Jubilee and TEN fields to 2040, following the finalization of a new gas sales agreement. The company is now working closely with government authorities to finalize the remaining agreements.
Tullow’s newly appointed CEO, Ian Perks, who assumed the role in September 2025, highlighted these objectives in a recent trading update.
In June, Tullow and its partners—including PetroSA, Kosmos Energy, GNPC, and Explorco—signed a Memorandum of Understanding (MoU) with the Ghanaian government covering the West Cape Three Points and Deep Water Tano blocks.
A key milestone is the new gas sales contract for Jubilee, which establishes clear gas pricing for the life of the extended licenses.
Tullow continues to resolve outstanding issues, including payment terms for gas sales and a revised development plan for Jubilee, which requires parliamentary approval.
Production at Jubilee has averaged approximately 61,000 barrels per day gross (23,900 barrels per day net to Tullow) through October, supported by a new production well completed this year. A second well, J73-P, began drilling this month and is expected to start production before year-end.
The TEN field has consistently outperformed expectations, producing around 16,000 barrels per day, driven by strong output from the Ntomme and Enyenra fields.
Both Jubilee and TEN floating production storage and offloading vessels recorded an average uptime of 97 percent through October.
Tullow has approved its 2026 drilling plan, which includes five wells: four confirmed wells—three producers and one water injector—and an optional additional producer. The company is also conducting an ocean-bottom node seismic survey and utilizing new 4D seismic data to refine reservoir models and guide future drilling.
On the financial front, Tullow has strengthened its position through strategic asset sales, completing the sale of its Kenya interests for at least $120 million and Gabon assets for approximately $300 million after tax. The company is now in discussions with bondholders and investors to explore refinancing options ahead of a bond maturity in May 2026.
As of last month, outstanding payments from the Ghanaian government—including TEN development debt and unpaid cash calls—exceeded $200 million net to Tullow.
Perks emphasized that Tullow’s immediate focus is achieving financial stability. He noted that the company is concentrating on strong performance in Ghana, tighter cost controls, and capital structure refinancing.
He added that early drilling results in Ghana are positive and that the second well in the program has now been spudded. Tullow plans to manage natural production declines and enhance output with new wells as it looks toward 2026.
