Dr John Kpikpi, Leader of the Progressive Alliance of Ghana

The Progressive Alliance of Ghana (PAG) has criticised the recently concluded license extension agreement between the Government of Ghana and international oil giants Tullow Oil and Kosmos Energy, calling it a "very bad deal for the country" and demanding its immediate reversal.

The deal, initially reported by energy news outlet Upstream Online, extends the operating licenses for the Jubilee and TEN oil fields until 2040.

It reportedly involves a Memorandum of Understanding signed by the Ghana National Petroleum Corporation (GNPC), PetroSA, and Explorco.

As part of the deal, the companies will drill up to 20 new wells, with an estimated investment of $2 billion.

But PAG contends that the cost to Ghana’s sovereignty and economic future far outweighs the promised investment.

In a statement released Monday June 16, 2025, the party warned that the agreement threatens national interests by locking the country into a fiscal regime that heavily favours foreign companies.

According to PAG, the extended agreement includes a gas pricing formula that lowers the cost of associated gas and enforces rigid production targets — concessions they argue were agreed without national consultation or parliamentary oversight.

"The timing and secrecy of this deal are deeply troubling," the statement read.

"It was rushed through during a period of national economic difficulty, and it reflects a disturbing disregard for transparency, accountability, and the will of the people."

PAG outlined four major concerns:

Lack of Transparency – The party criticised the process as opaque, with no public engagement or parliamentary debate on a deal with long-term national implications.

Loss of Future Revenue – By fixing terms through to 2040, Ghana, they argue, surrenders significant bargaining power and potential future gains that could have been secured under more favorable conditions.

Call for Parliamentary Action – PAG is urging Parliament to reject any legislative process that seeks to ratify the deal, insisting that the country deserves a better-negotiated outcome.

Promise to Review the Deal – The party vowed that a future PAG-led administration would re-evaluate and potentially reverse the agreement to prioritize Ghanaian interests in all extractive industry contracts.

AM/KA

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