….. Cites market changes and investment risks; puts new Gas Company in limbo
Tullow Ghana Limited, has officially withdrawn its 2023 draft Amended Plan of Development (TAPOD) for the Tweneboa, Enyenra, and Ntomme (TEN) oil field and related Combined Gas Sales Agreement (CGSA), citing shifting market conditions, investment uncertainties, inflationary pressures, revised estimates of gas volumes, and the need for a revised long-term strategy.
In a letter dated May 29, 2025 and addressed to the Minister for Energy and Green Transition, John Abdulai Jinapor, Tullow Ghana’s Managing Director, Jean-Médard Madama, said the decision follows ongoing technical and commercial reassessments.
“We write following our communication during the deep dive session held with you in April 2025, that the TEN Partners are reviewing the long-term plan for TEN,” Mr Madama stated.
Energynewsafrica.com reports that the withdrawal of the plan raises questions about the investment needed to develop the TEN field further and potential implications for gas prices in Ghana. Industry experts believe this development poses a significant threat to the realisation of the country’s plan to construct a second gas processing plant (GPP2).
According to energynewsafrica.com, a source familiar with the gas industry, justifying GPP2 with only a firm export flow of 160 mmscfd from both Jubilee and TEN will be challenging. With the existing gas processing plant operated by Ghana National Gas Company having a capacity of 150 mmscfd, operational experts believe there won’t be much gas left for the proposed GPP2.
Last month, Minister for Energy and Green Transition John Abdulai Jinapor inaugurated a technical committee to fast-track the processes leading to the establishment of the second gas processing plant. The plant’s establishment is expected to save the West African nation around US$500 million annually.
The letter explained that negotiations on the CGSA had already been paused in December 2023, and proposals from the Ghana Negotiation Committee (GNC) on an acceptable Level 2 payment security mechanism, a critical component for further investment in the TEN gas infrastructure, were awaiting.
“Since the TEN business case supporting the TAPOD was developed in 2022, the underlying investment basis has changed,” Mr Madama noted. “Key developments include market changes, inflationary pressures, new cost reduction opportunities on the TEN FPSO, and improved understanding of the TEN field.”
While gas volumes from the TEN field remain significant, Tullow now considers them smaller and riskier to develop than previously anticipated. According to the revised outlook, combined export volumes from both Jubilee and TEN fields are now projected at 160 million standard cubic feet per day (mmscf/d), with some potential upside.
Mr Madama stressed that realising these volumes would require further investment “underpinned by an appropriate commercial framework, including an economic gas price and acceptable payment security.”
Despite the TAPOD and CGSA withdrawal, Tullow reaffirmed its commitment to Ghana’s energy sector and the TEN field’s long-term viability.
“We remain committed to the TEN re-development priorities, including extending TEN’s economic life, maximising resource recovery and safeguarding the viability of gas supply to Ghana,” the letter affirmed.
To that end, Tullow and its partners, Kosmos Energy, PetroSA, Ghana National Petroleum Corporation (GNPC), and GNPC Explorco, intend to conduct a fresh evaluation and return to the government with a revised long-term TEN plan by the third quarter of 2025.
“We deeply value our partnership with the Government of Ghana and remain committed to ensuring the TEN field operates to its full potential and contributes significantly to the nation’s energy security,” Mr Madama wrote.
In the interim, Tullow says it is “progressing various workstreams to maximise TEN value and production,” including efforts to access in-field exploration (ILX) rights and engaging potential third-party interim gas offtakers.
The correspondence was also copied to key stakeholders in Ghana’s energy sector, including the Deputy Minister for Energy and Green Transition, the Chief Executive Officer of GNPC, and senior executives at Kosmos Energy Ghana, GNPC Explorco, and PetroSA Ghana.
