By Eugene Davis
Parliament has approved the extension of the West Cape Three Points (WCTP) and Deepwater Tano (DWT) petroleum agreements to December 2040, endorsing a framework aimed at unlocking up to $2bn in fresh investment and slowing decline in two of Ghana’s most strategic offshore assets.
The decision clears the way for between 10 and 20 new wells and expanded subsea infrastructure to sustain production in the Jubilee and TEN fields. Lawmakers were told output from the fields had fallen by about 46 per cent between 2019 and October 2025, underlining the urgency of reinvestment if Ghana is to protect crude volumes, gas supply and associated fiscal revenues.
Under the amended terms, the Ghana National Petroleum Corporation (GNPC) will secure an additional 10 per cent participating interest from July 2036, lifting its total stake to 22.5 per cent in WCTP and 25 per cent in DWT. The extended field life is projected to yield roughly $374mn in incremental value to the state, including about $255mn in gas savings.
Presenting the Energy Committee’s report, its chairman, Emmanuel Kwasi Bedzrah, argued that continuity was central to the recommendation. The existing contractor group, he said, possesses deep technical and operational knowledge of the Jubilee and TEN assets. Maintaining the current structure would reduce transition risk, preserve institutional memory and avoid production disruptions that could arise from licence expiry or a change of operator.
The approval also covers a Master Gas Agreement intended to secure supply to the domestic power sector, which depends on Jubilee and TEN gas for more than a quarter of national requirements. Gas prices are expected to fall by about 18 per cent under the revised arrangement, with volumes rising from 100mmscfd to 130mmscfd and scope for further increases.
At the centre of the gas framework is a Corporate Income Tax (CIT) offset mechanism designed to serve as payment security for gas supplied to GNPC. As of November 2025, about $165mn was owed under the Jubilee Gas Sales Agreement. Officials maintain that the offset structure avoids interest-bearing borrowing and new debt, while the Ministry of Finance has committed to reimburse any offset amounts into the Petroleum Holding Fund within 60 days, in line with the Petroleum Revenue Management Act.
The Minority, however, voiced reservations during the debate. Isaac Yaw Boamah Nyarko, MP for Effia, described the extension as a “novel opportunity” but questioned whether Ghana was maximising its leverage. With the agreements still having remaining tenure, he argued that the country should consider allowing them to run to expiry and give GNPC the opportunity to assume operatorship.
“GNPC was created to undertake commercial production,” he said, contending that the national oil company has built sufficient capacity to manage the blocks when the current contracts lapse. Allowing GNPC to take over, he suggested, could enable Ghana to capture a greater share of the full economic benefits, particularly as the fields are already in production and the upfront investment risks have largely been absorbed.
The Minority also raised concerns over the CIT offset arrangement. Corporate income tax, Mr Nyarko argued, is revenue due to the state and should flow directly into the Petroleum Holding Fund for allocation by government. Using tax obligations to offset debts arising from inefficiencies elsewhere in the gas-to-power chain, he cautioned, risks weakening fiscal discipline and entrenching structural payment arrears.
Civil society group the African Centre for Energy Policy echoed calls for caution, questioning the case for early extension and urging clearer safeguards to protect the state’s long-term fiscal position.
Despite those concerns, Parliament concluded that the balance of risk favoured extension, citing the scale of proposed investment, lower gas prices and enhanced GNPC equity as material gains.
For Ghana, where oil and gas revenues remain central to fiscal consolidation and foreign exchange stability, the vote reflects a calculated choice: secure continuity and fresh capital today, while managing the fiscal and governance risks that come with it. The durability of that choice will depend less on ratification and more on execution.
