Parliament OKs Oil Deal Extensions to 2040 ($2bn Investment, More GNPC Interest Secured)
To protect the continuity of upstream operations and keep production going in mature fields, Parliament has approved extending the West Cape Three Points (WCTP) and Deepwater Tano (DWT) petroleum agreements until December 31, 2040. The extensions, which involve the government, Ghana National Petroleum Corporation, GNPC Exploration and Production Limited, Tullow Ghana Limited, Kosmos Energy Ghana HC, Kosmos Energy Ghana Investments, and PetroSa Ghana Limited, are expected to bring in up to $2 billion in new investments, including drilling and underwater infrastructure. They will also help keep institutional knowledge and lower production risks. The new terms mean that GNPC will get an extra 10% interest starting on July 20, 2036. This will bring the total to 22.5% for WCTP and 25% for DWT. The state is expected to save about $374 million, including $255 million in gas savings. Parliament also approved the master gas agreement and a corporate income tax offset mechanism to pay off $165.15 million in gas debts owed under the Jubilee Gas Sale Agreement. This is a fiscally efficient, interest-free solution that follows the Petroleum Revenue Management Act, 2011 (Act 815).
