By Adnan Adams Mohammed
The Tema Oil Refinery (TOR), long burdened by legacy debts and operational pauses, is witnessing a strategic resurgence.
According to the refinery’s Corporate Affairs Officer, Godwin Mahama Ayaba, a combination of “restored leadership” and a landmark plan to process domestic crude oil is set to transform the facility into a pillar of Ghana’s energy security.
Speaking on JoyNews’ The Pulse last week, Mr. Mahama emphasized that the refinery is currently undergoing a rigorous turnaround fueled by a renewed partnership between TOR, the Ministry of Energy, and the central government.
Tapping into Jubilee and TEN fields
In a significant shift in policy, Mr. Mahama revealed that the government is in advanced talks to allocate a portion of its interest in the Jubilee and TEN oil fields directly to the refinery.
Historically, Ghana has exported much of its high-quality domestic crude while importing refined petroleum products a cycle that has often strained the cedi. This new arrangement aims to break that pattern.
“Very soon you will see the government giving out some portions of its interest in Jubilee and TEN field to the refinery for refining,” Mr. Mahama disclosed. “The facilities are configured in such a way that we will be able to refine our local crude.”
Capacity expansion: The 100,000-barrel goal
The revival isn’t just about what goes into the refinery, but how much it can handle. Management has set its sights on a massive expansion project to increase refining capacity to 100,000 barrels per day.
This expansion is seen as the “operational engine” that will allow TOR to move beyond its current limitations and meet a larger share of the national demand for petrol, diesel, and aviation fuel.
Addressing the debt “elephant in the room”
Operational success at TOR has historically been hampered by a mountain of inherited debt. The new management, however, is reportedly taking a “discipline-first” approach to the refinery’s balance sheet.
Key financial priorities include:
● Active Creditor Engagement: Negotiating sustainable payment plans for legacy debts.
● Fiscal Discipline: Ensuring that new operations are profitable and do not add to the existing debt stock.
● Strategic Feedstock Security: Using domestic crude to lower the costs associated with importing raw materials.
A matter of leadership
For many industry observers, the problem at TOR has often been more political than technical. Mr. Mahama was quick to address this, stating that the current atmosphere at the refinery is one of unprecedented cooperation.
“I can say without a shred of doubt or any equivocation that leadership has been restored at the refinery,” he stated. “That is why today we are seeing a willingness from the central government and the ministry to ensure it works again.”
Why it matters now
The timing of TOR’s revival is critical. With global oil markets currently rocked by the Strait of Hormuz crisis and Brent crude hovering near US$100 a barrel, Ghana’s ability to refine its own oil could serve as a vital shock absorber against global price volatility and “war risk” surcharges.
As the government moves to finalize the supply of Jubilee crude to the Tema facility, the refinery stands at the edge of a new era—one where “Made in Ghana” fuel could finally become a consistent reality.
