Mahama orders plan to expand Tema Oil Refinery capacity to 100,000 barrels a day

Accra, 1 August President John Dramani Mahama has directed the Minister of Energy and Green Transitions, Dr John Jinapor, to work with the Board and management of Tema Oil Refinery Limited (TOR) on a strategic plan to increase the state-owned refinery’s capacity to 100,000 barrels a day.

The President also reaffirmed the Government’s commitment to restructuring TOR in a way that would permanently remove political interference from its operations. He said the plan formed part of the Government’s wider economic transformation agenda.

President Mahama announced the initiative while commissioning the refurbished refinery at the Tema industrial enclave. The event also marked TOR’s processing of one million barrels of locally produced Jubilee Field Medium Sweet Crude oil into finished petroleum products.

He said the rehabilitation of the Crude Distillation Unit, 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 successes.

According to the President, the work demonstrated renewed confidence in Ghana’s industrial capability and reflected the country’s determination to invest in infrastructure for future generations.

“Our vision for Tema Oil Refinery extends far beyond the successful refurbishment of these facilities. We do not intend merely to keep TOR operating, we intend to make it all more competitive. We intend to make it all more efficient, and we intend to make it all more commercially viable,” the President said.

“Indeed, we intend to position it as a strategic driver of Ghana’s industrial future. That is why today’s ceremony should not be viewed as the end of the restoration programme.”

He described the commissioning as the start of a broader national ambition to build an integrated petroleum industry capable of serving Ghana’s domestic economy, supporting regional trade and contributing meaningfully to Africa’s industrial development.

President Mahama said TOR would have an increasingly important role in the Government’s 24-Hour Economy initiative and the Accelerated Export Development Programme.

He said institutions such as the refinery would help expand industrial production, support manufacturing, create quality jobs and strengthen Ghana’s competitiveness under the African Continental Free Trade Area.

The President welcomed comments from TOR Managing Director Edmond Kombat that the refinery was already operating around the clock.

“Government is working on the incentives for enterprises that are running 24-Hour shifts. We are going to give you incentives in terms of tax breaks, in terms of energy tariffs, but more importantly, when you import capital goods for plant expansion or installation of new plants, will allow you to bring it in tax and duty-free,” he stated.

He said TOR’s revival was not only a success for Ghana’s petroleum industry, but also evidence of the country’s determination to move from exporting raw materials towards an economy based on value addition, innovation and industrial excellence.

“Our work does not end with restoring TOR. Our vision is to transform Ghana into West Africa’s leading petroleum refinery storage and logistics hub. Adding value to our natural resources, creating jobs, strengthening energy security, and driving industrial growth.”

The President added that the Government planned to expand TOR’s SBM (Single Buoy Mooring) to enable the facility to upload more products more efficiently and quickly than under its current operation.

He praised the Board, management and staff for helping to turn around the fortunes of the state-owned refinery.

“Your professionalism, resilience, and belief in this national institution has to start confidence in one of Ghana’s most strategic assets,” he said.

“So today’s ceremony is about more than a Refinery. It’s a testament to what leadership can do, what sound governance and national determination can achieve.”

President Mahama said the restoration of TOR showed that Ghana could rebuild strategic institutions, add value to its natural resources and pursue sustainable prosperity.

He described the development as another important milestone in the Government’s Reset Agenda and a reminder that the country’s strongest years were still ahead.

In his welcome remarks, Mr Edmond Kombat said the completion of TOR’s long-outstanding unaudited financial accounts from 2019 to 2025, the successful receipt and processing of indigenous Ghana crude oil and the refinery’s return to production were connected achievements.

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

GNA

Edited by George-Ramsey Benamba