Ghana has agreed a roadmap with Tullow Oil (LSE: TLW; GSE: TLW) to address a $393mn tax liability upheld by an international arbitration tribunal, President John Dramani Mahama said at an industry conference in Takoradi on November 10, as he reaffirmed plans for up to $2bn of investment in the Tullow-operated Jubilee and Tweneboa-Enyenra-Ntomme (TEN) offshore oilfields.

The roadmap follows an International Chamber of Commerce (ICC) arbitration ruling, made public by the finance ministry on September 30, that upheld the Ghana Revenue Authority’s assessment against Tullow Ghana. The liability comprises a $196.5mn corporate income tax assessment on proceeds from Tullow’s business interruption insurance for the 2016–2019 financial years, plus a 100% penalty.

The terms of the roadmap have not been disclosed, and the arrangement is not a completed settlement, according to Graphic Online, which reported that talks would also cover a separate dispute over disallowed loan-interest deductions. That case concerns a $190.5mn assessment on intercompany loan interest for 2010–2020, and its arbitration hearing has been postponed to 2027.

Tullow said on September 30 that it was “disappointed” by the tribunal’s decision and would assess its options. Its shares fell by as much as 45% that day. The London-listed producer, which reported net debt of about $1.4bn at the end of June, has sold assets in Gabon and Kenya to concentrate on Jubilee and TEN, which makes a workable outcome with Ghana central to its plans.

Investment commitments

At the same event, the Local Content Conference, Mahama restated the Jubilee and TEN investment alongside a $1.5bn commitment from Offshore Cape Three Points (OCTP) partners first announced in September 2025. The two commitments, worth $3.5bn combined, are intended to fund new wells, subsea infrastructure and the expansion of production facilities, according to a government statement. Mahama said the Jubilee investment would sustain oil output while increasing gas production.

The Jubilee and TEN programme was originally announced in June 2025 and underpinned extensions of the West Cape Three Points and Deep Water Tano petroleum agreements to December 31, 2040, which parliament ratified in February 2026. The agreements provide for up to 20 additional wells at Jubilee over the extended licence period. Tullow, which completed a six-well Jubilee campaign in September, has secured a rig for up to 10 more wells in 2027–2028.

Tullow operates Jubilee with a 38.98% interest, alongside Kosmos Energy (NYSE: KOS; LSE: KOS) with 38.61%, Ghana National Petroleum Corporation (GNPC) with 19.69% and South Africa’s state-owned PetroSA with 2.72%. The same four companies are partners in TEN, with different stakes. Under the extended agreements, GNPC’s interest will increase by a further 10 percentage points from July 20, 2036, with the other partners’ stakes reduced pro rata.

Gas savings and output recovery

Revised commercial terms are expected to reduce the Jubilee gas price by about 18%, saving Ghana an estimated $300mn, Mahama said, without specifying the period. A renegotiated gas sales agreement with OCTP operator Eni is expected to cut the average price of gas from that field by 23%, with projected savings of about $3.5bn over the field’s remaining life.

Mahama also said national crude production had recovered to more than 120,000 barrels per day (bpd) after falling to about 88,000 bpd, without saying when the low point was reached. Ghana’s output fell for six consecutive years to 37.3mn barrels in 2025, from a 2019 peak of 71.44mn barrels, according to the Public Interest and Accountability Committee (PIAC). Petroleum Commission data show production of 20.58mn barrels in the first half of 2026, up 11.7% year on year.

Upstream reforms and exploration

Separately, Petroleum Commission Chief Executive Emeafa Hardcastle said the Ministry of Energy and Green Transition had completed a review of the upstream petroleum legal, regulatory and fiscal regime. The proposed reforms have been submitted to Cabinet and will then require parliamentary approval, according to the Ghana News Agency.

Hardcastle also said a development plan for the Eban-Akoma discovery in Cape Three Points Block 4 (CTP-B4), which the Eni-led joint venture declared commercial in July 2025, was progressing through the regulatory process. GNPC’s exploration subsidiary Explorco has identified a drilling location in the northern Voltaian Basin and is seeking a rig, with drilling targeted for late 2026 or early 2027.

Source: Intellinews