Mahama brings refurbished Tema Oil Refinery back into full operation

President John Dramani Mahama has commissioned the refurbished Crude Distillation Unit (CDU) at Tema Oil Refinery Limited (TOR), marking the return of Ghana’s strategic state-owned refinery to full operation.

The ceremony in Tema also coincided with the processing of one million barrels of locally produced Jubilee Field Medium Sweet Crude oil into finished petroleum products.

President Mahama said the rehabilitation of the CDU, the restoration of the residual fuel fluid catalytic cracking units, the installation of the new F-61 crude heater and the return of boiler number eight to service represented more than engineering improvements.

He described the work as evidence of renewed confidence in Ghana’s industrial capacity and a commitment to developing infrastructure for future generations.

“Every investment made here strengthens our national resilience. Every improvement in refining capacity reduces our dependence on imported petroleum products,” the President stated.

He said the refinery’s return to production fulfilled the vision of Ghana’s first President, Osagyefo Dr Kwame Nkrumah, who believed the country needed its own refining industry in the post-colonial period.

Dr Nkrumah commissioned the facility in 1963, when it was known as Ghana Italian Petroleum Company (GHAIP). Ghana later took full ownership of the refinery in 1977.

“Since then, its history has been cheeky. It has had periods of glory; it has had periods of downturn,” President Mahama said.

He argued that the revival of TOR had challenged the belief that state-owned enterprises could not operate effectively, or that privatisation was the only way such businesses could survive.

According to President Mahama, TOR workers resisted a proposal by the previous Government to lease the strategic national asset for 15 years for $22 million.

He praised the refinery’s management, board, employees and strategic partners for reversing its fortunes.

“But today, to the glory of God, a very determined Management and Board, very talented and efficient workers, working with strategic partners, has stemmed the fortunes of this refinery around.

“And I must say that this has been done without a single Cedi from the government of Ghana. TOR has achieved all this on their own. The government has not bailed them out. We haven’t put a single Cedi into this rebound.”

The President congratulated Dr John Jinapor, Minister of Energy and Green Transition; Nayon Bilijo, Board Chairman of TOR; Edmond Kombat, Managing Director of TOR; and the refinery’s staff.

“Well done, Ayeekoo,” he said.

President Mahama said the commissioning was a demonstration of Ghana’s determination to protect and restore strategic national assets rather than allow them to fall into decline.

“We are here to affirm that Ghana possesses not only the natural resources, but also the determination, the expertise and the vision to transform those resources into lasting prosperity for our people. Every generation is confronted with defining choices,” he said.

“Some choose the easier path of abandoning institutions when they fall into difficulty. Others choose the more demanding path of rebuilding them, restoring confidence, renewing hope and preparing them to serve future generations yet unborn. Ours has been to deliberately choose the second path.”

He added that countries built prosperity by processing their own resources, strengthening domestic industries and creating opportunities for their citizens.

“That was the vision that inspired our first President to establish the Tema Oil Refinery more than six decades ago. It remains just as relevant today as Ghana seeks to build a stronger, more competitive and more self-reliant economy,” he said.

Since May, TOR has received three separate one-million-barrel cargoes of crude oil: Bonga crude, Baleine crude and Ghana’s own Jubilee Medium Sweet Crude.

President Mahama stressed that TOR had paid in full for the Ghanaian crude and had not received it on credit.

He said the development showed the Government’s commitment to ensuring Ghana’s petroleum resources were processed domestically and generated greater value at home.

Edmond Kombat said the completion of the refinery’s outstanding unaudited financial accounts from 2019 to 2025, the successful receipt and processing of indigenous Ghanaian crude and TOR’s return to production were connected achievements.

Together, he said, they represented a systematic reset and the restoration of the capability of Ghana’s national refinery.