Parliament has ratified a Memorandum of Understanding (MoU) between the government, the Ghana National Petroleum Corporation (GNPC), and contractor parties to extend the petroleum agreements covering the West Cape Three Points (WCTP) and Deepwater Tano (DWT) blocks to December 31, 2040.
Originally set to expire in 2034 (WCTP) and 2036 (DWT), the extensions are supported by a US$2 billion commitment to fund the drilling of at least 10 and up to 20 new wells. The investment will also support the development of essential subsea infrastructure to sustain oil and gas production in the Jubilee and Tweneboa Enyenra Ntomme (TEN) fields.
Government’s Justification
The government defended the move as necessary to ensure continuity in upstream petroleum operations and maintain production in mature fields. Officials highlighted that maintaining the current operators and contractual framework will:
-Minimise transition risks
-Preserve institutional memory
-Prevent disruptions from premature licence termination or changes in operatorship
-Minority’s Concerns
During the debate on Thursday, February 19, 2026, Minority Members of Parliament raised concerns over the early extensions.
They cautioned that approving agreements well ahead of expiry could set a precedent, encouraging other companies to seek similar security. The Minority argued that the existing terms allow sufficient time to renegotiate closer to expiration.
Master Gas Agreement Extension
The House also approved the extension of a Master Gas Agreement involving the state, GNPC, and contractor parties. The revised framework is expected to:
-Reduce gas prices by 18%
-Increase gas supply from 100 mmscf/d to 130 mmscf/d, with potential for an additional 50 mmscf/d
-Boost GNPC’s interest in each petroleum agreement by 10%
-Strengthen GNPC’s capacity to gradually assume operatorship and build institutional expertise within Ghana’s petroleum sector
The ratification signals government commitment to sustaining production, enhancing energy security, and supporting investment in Ghana’s upstream petroleum industry.
