The Progressive Alliance of Ghana (PAG) has expressed serious concern over the recently announced license extension agreement between the Government of Ghana and oil multinationals Tullow Oil and Kosmos Energy.
The agreement, first reported by Upstream Online, has been described by PAG as a “very bad deal for the country,” which must be reversed immediately in the interest of national sovereignty, economic justice, and transparency.
The deal extends the licenses for the Jubilee and TEN oil fields until 2040 and was signed under a Memorandum of Understanding involving the Ghana National Petroleum Corporation (GNPC), PetroSA, and Explorco. It also includes the drilling of up to 20 new wells and an estimated \$2 billion in investment—but at what long-term cost to the Ghanaian people?
Who truly benefits from this deal?
PAG believes this extension locks Ghana into a fiscal arrangement that disproportionately benefits foreign partners, undermines local value retention, and limits future renegotiation opportunities. The agreement also reportedly includes a gas pricing formula that reduces the cost of associated gas and imposes rigid gas production targets—key concessions made without broad national consultation or parliamentary scrutiny.
Even more troubling is the timing of the deal—rushed and concluded under the radar—at a time when Ghana is grappling with economic hardship and a growing demand for resource sovereignty.
The Progressive Alliance of Ghana makes the following key points:
1. The deal lacks transparency. The process was shrouded in secrecy, with no national debate or open parliamentary discussion. The implications of this deal are generational and deserve full public engagement.
2. Ghana stands to lose long-term revenue. By locking in fiscal terms and extending the licenses deep into the future, the government is surrendering future bargaining power and economic value that could have been secured on more favourable terms.
3. Parliament must reject the extension. PAG urges the Parliament of Ghana to reject any proposed development plan or legislative process that seeks to validate this agreement. Ghanaians deserve better terms and full accountability.
4. A future PAG-led government will review the deal. We are committed to reversing this agreement and ensuring that all extractive contracts undergo a strict national interest test. Ghana’s oil wealth belongs to its people—not to foreign multinationals and their local enablers.
PAG is sounding the alarm and calls on civil society, the media, and all patriotic citizens to demand accountability. This is more than just an economic matter—it is a question of sovereignty and the future stewardship of Ghana’s natural resources.
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