The Executive Director of the Centre for Environmental Management and Sustainable Energy, Benjamin Nsiah, has called for a review of Ghana’s Petroleum Act to ensure a more reliable allocation of locally produced crude oil to the Tema Oil Refinery as part of efforts to revive the struggling refinery.
According to Mr. Nsiah, guaranteeing domestic crude supply to TOR is critical if the refinery is to restore stable operations and strengthen Ghana’s refining capacity amid persistent financial and operational pressures.
Concerns Over Crude Supply Strategy
Speaking on the refinery’s recovery efforts, Mr. Nsiah argued that relying heavily on imported crude from the West African sub-region may not provide a sustainable long-term solution due to TOR’s financial constraints.
“As we speak, the cash flow statements of TOR do not guarantee available resources to import these huge volumes,” he stated.
He warned that rising global energy prices, freight charges and insurance costs could further increase the financial burden on the refinery, even if crude sourced from certain international markets initially appears cheaper.
“In terms of pricing, crude from the Middle East may be cheaper but freight and insurance costs may make it quite expensive,” he added.
His remarks come at a time when TOR continues efforts to stabilise production after years of recurring shutdowns linked to crude shortages, ageing infrastructure and mounting debt obligations.
Push for Policy Reforms
Management of TOR has also acknowledged the need for reforms within Ghana’s crude allocation framework to support the refinery’s long-term recovery strategy.
Managing Director Edmond Kombat said discussions are ongoing on restructuring the country’s crude allocation system to ensure more predictable feedstock supply for the refinery.
He explained that TOR’s turnaround plans form part of broader efforts to reposition the facility after years of financial difficulties and operational instability.
The refinery is increasingly exploring crude sourcing opportunities within West Africa while attempting to improve efficiency and maintain operational continuity.
Industry stakeholders say geopolitical tensions involving Iran and the United States, together with volatile shipping costs, continue to place additional pressure on global crude markets and import expenses.
Despite the challenges, TOR management insists the refinery remains committed to restoring stable operations and improving productivity as part of Ghana’s broader energy security agenda. READ ALSO: France Pushes New Africa Strategy at Kenya Summit
