Parliament extends Jubilee and TEN licences to 2040 as Kosmos ramps up production

Kosmos Energy has confirmed that Ghana’s Parliament has formally ratified licence extensions for the West Cape Three Points and Deepwater Tano Petroleum Agreements, securing the future of the Jubilee and TEN fields until 2040.

The approval announced by Kosmos in a statement marks an important development for Ghana’s upstream petroleum sector, extending production rights for two of the country’s flagship offshore assets and paving the way for fresh investment commitments.

In a trading update issued from Dallas, the company said the extensions are expected to deliver up to $2 billion in incremental investment into Ghana’s oil and gas industry. The agreements are also projected to increase the supply of affordable gas for domestic power generation, strengthening energy security.

Kosmos indicated it had played a leading role in progressing, negotiating and executing the extensions in collaboration with the Government of Ghana. Under the amended Jubilee plan of development, up to 20 additional wells are expected to be drilled, a move the company believes will increase its proven and probable, or 2P, reserves at the field.

Operationally, the Jubilee field is already showing stronger performance. The J74 well, which came on stream in early January, is now fully ramped up and producing approximately 13,000 barrels of oil per day. This has lifted average gross Jubilee output to more than 70,000 barrels per day in February month-to-date, in line with company projections.

Kosmos also announced that the first well in its five-well 2026 drilling campaign, J75, has been successfully drilled, encountering around 40 metres of net pay. The well is expected to be completed in three zones, similar to earlier wells J74 and J72, and is projected to come online towards the end of the first quarter.

At the TEN fields, the partnership has signed a sale and purchase agreement to acquire the floating production, storage and offloading vessel for a gross consideration of $205 million, equivalent to about $40 million net to Kosmos. The payment is due upon completion at the end of the first quarter of 2027. The company expects the acquisition to deliver material operating cost reductions from 2026 onwards.

Beyond Ghana, Kosmos reported continued strong performance at the Greater Tortue Ahmeyim LNG project offshore Mauritania and Senegal. Phase One of the development shipped 3.5 gross LNG cargoes in January, with production averaging approximately 2.9 million tonnes per annum equivalent year-to-date, exceeding the 2.7 mtpa nameplate capacity.

On the financial front, the company said it had successfully completed a $350 million Norwegian bond in January, attracting support from both existing and new investors. Of the proceeds, $100 million was used to repay borrowings under its Reserve Base Lending facility, while the remainder will be directed towards repurchasing 2027 senior unsecured notes. Kosmos has also begun hedging its 2027 production, securing a floor price of $60 per barrel on two million barrels of oil.

Commenting on the developments, Andrew G. Inglis, Kosmos Energy’s chairman and chief executive officer, said: “Parliamentary ratification of the license extensions in Ghana marks an important milestone for the country, and Kosmos is proud to have led the work with the Government of Ghana to execute these agreements. Jubilee is a world-class oil field with significant remaining potential that can be unlocked through continued investment, regular drilling and high facility reliability, supported by the latest seismic acquisition and processing technologies.

“As the partnership advances the current drilling program, Jubilee production continues to rise in line with our expectations. With Jubilee output exceeding 70,000 bopd and GTA producing above nameplate capacity, Kosmos’ total production has reached record levels.

“This improved performance, combined with the financial progress we are making, strengthens the resilience of the company and ensures we are well positioned to create long-term value for our shareholders.”