The Progressive Alliance of Ghana (PAG) has raised strong objections to the recently signed oil license extension agreement between the Government of Ghana and multinational oil firms Tullow Oil and Kosmos Energy, describing the deal as a "very bad one" for the country.

In a statement issued on Monday, PAG accused the government of bypassing national stakeholders and sacrificing the country’s long-term economic interests for short-term gains.

The agreement, first reported by Upstream Online, extends the production licenses for the Jubilee and TEN oil fields until 2040 and is expected to result in up to $2 billion in new investments and the drilling of 20 additional wells.

However, PAG argues that the deal undermines Ghana’s sovereignty and future fiscal flexibility, warning that it disproportionately benefits foreign interests at the expense of local value retention.

“This extension locks Ghana into a fiscal arrangement that reduces our bargaining power and closes the door on renegotiating more favourable terms in the future,” the statement said.

The agreement, signed through a Memorandum of Understanding involving the Ghana National Petroleum Corporation (GNPC), PetroSA, and Explorco, reportedly includes provisions such as a new gas pricing formula and fixed gas production targets — concessions PAG believes were agreed upon without adequate public consultation or parliamentary oversight.

PAG described the process leading to the deal as opaque and lacking transparency, emphasising that it was concluded quietly despite its far-reaching economic and environmental implications.

“The implications of this deal are generational and deserve full public engagement. It must not be allowed to stand,” the party stated.

Among the key demands put forward by the Progressive Alliance are:

A full rejection of the agreement by Parliament.

Immediate public disclosure of all documents related to the extension.

A national conversation about the future of Ghana’s extractive sector.

A pledge to review and potentially reverse the deal under a future PAG-led government.

PAG also called on civil society groups, the media, and concerned citizens to speak out and demand accountability from the government.

“This is not just an economic issue. It is a matter of sovereignty and the responsible stewardship of Ghana’s natural resources,” the statement concluded.

The Communications Directorate of PAG signed off the statement, reiterating the group’s commitment to transparency, equity, and national interest in all extractive industry contracts.