TOR Can Refine Ghana’s Native Crude – Corporate Affairs Officer Clarifies

Introduction

The operational status and technical capabilities of the Tema Oil Refinery (TOR) have long been subjects of intense public scrutiny in Ghana’s energy sector. Following a prolonged period of inactivity and extensive maintenance, the refinery has resumed operations, sparking renewed debate regarding its ability to process locally produced crude oil. In a recent address, the Corporate Affairs Officer of TOR, Godwin Mahama, provided a definitive clarification on the matter. He confirmed that the refinery possesses the technical capacity to refine Ghana’s domestic crude, a commodity classified as “sweet crude,” aligning perfectly with TOR’s design specifications. This announcement marks a pivotal moment in Ghana’s downstream petroleum sector, signaling a potential shift towards energy independence and economic revitalization.

Key Points

Background

The Tema Oil Refinery (TOR) has historically been the linchpin of Ghana’s downstream petroleum industry. However, years of underutilization, debt accumulation, and aging infrastructure led to a cessation of crude processing operations. The public discourse surrounding TOR’s viability intensified as Ghana continued to rely heavily on imported refined petroleum products despite being an oil-producing nation.

The “Sweet Crude” Distinction

At the heart of the clarification provided by the Corporate Affairs Officer is the chemical composition of Ghana’s crude oil. In the petroleum industry, crude oil is categorized based on its sulfur content and density. “Sweet crude” has low sulfur content and is easier to refine into high-value products like gasoline and diesel. “Sour crude,” conversely, has high sulfur content and requires more complex, expensive refining processes.

Ghana’s crude, particularly that from the Jubilee field, is known to be sweet crude. This characteristic is vital because TOR, built in the late 1990s, was designed specifically to handle this type of feedstock. The confusion in the public domain often stemmed from comparisons with refineries designed for sour crude or assumptions that TOR’s technology had become obsolete. Mr. Mahama’s statement serves to correct this misconception, affirming that the refinery’s technical design remains compatible with the nation’s primary natural resource.

Recent Operational Milestones

The current positive outlook follows a critical maintenance phase. Between August 1 and October 30, 2025, TOR undertook a comprehensive Turnaround Maintenance (TAM) program on its Crude Distillation Unit (CDU). The CDU is the first processing unit in a refinery, responsible for separating crude oil into various fractions. Completing this maintenance within schedule and meeting international safety standards was a prerequisite for the refinery’s restart.

The National Petroleum Authority (NPA), the industry regulator, played a crucial role in this phase. Before any refinery can process crude, it must pass rigorous regulatory inspections. The NPA’s clearance confirmed that TOR met all mandatory operational, safety, and environmental requirements, effectively validating the refinery’s readiness to resume commercial activities.

Analysis

The implications of TOR’s return to full capacity extend far beyond the refinery’s fence. The clarification regarding the processing of local crude touches on national energy security, economic policy, and industrial sustainability.

Economic Implications of Crude Ownership

Godwin Mahama highlighted a critical distinction in refining economics: the “tolling” model versus the “state ownership” model. This distinction is central to the debate on how Ghanaians benefit from their natural resources.

Under a state ownership model, the Government of Ghana purchases the crude oil produced domestically. TOR refines this crude, and the resulting finished products (petrol, diesel, LPG) are sold domestically. In this scenario, the profit margins (the “crack spread”) remain within the Ghanaian economy, potentially stabilizing fuel prices and generating revenue for the state.

Conversely, a tolling arrangement involves third-party entities bringing crude to TOR for refining in exchange for a processing fee. While this guarantees revenue for the refinery’s operations, the finished products are returned to the crude owner, who may then export them. This model limits the local economic multiplier effect. Therefore, the government’s negotiation strategy for crude supply will determine whether TOR becomes a tool for national price stabilization or merely a service provider for international traders.

Technical Viability and Capacity Expansion

The announcement regarding the installation of a new furnace (F-61) indicates a strategic move toward scalability. The CDU is often the bottleneck in refinery throughput. By upgrading the furnace, TOR aims to increase its processing rate from 28,000 barrels per stream day (bpsd) to the original design capacity of 45,000 bpsd, with a medium-term target of 60,000 bpsd.

This expansion is significant. It suggests that TOR is not merely trying to survive but is positioning itself to compete regionally. However, sustaining higher throughput requires a consistent supply of crude oil. The analysis suggests that while the hardware is being upgraded, the software—the supply chain agreements—must be equally robust to prevent the refinery from returning to dormancy.

Practical Advice

For stakeholders, investors, and the general public, understanding the nuances of TOR’s operations is essential. Here is practical guidance on what to monitor moving forward.

For Energy Sector Stakeholders

Monitor Supply Contracts: Keep a close eye on announcements from the Ministry of Energy regarding crude supply agreements. The specific terms (tolling vs. purchase) will dictate the pricing dynamics of petroleum products in Ghana.

Watch the Furnace Commissioning: The official commissioning of the F-61 furnace is a key indicator of progress. Once operational, it will validate the claims of increased capacity. Investors should look for data on “barrels per stream day” processing rates in TOR’s official reports.

For the Ghanaian Public

Understand “Sweet Crude” Value: Recognize that Ghana’s crude is high-quality. Processing it locally should theoretically reduce transportation costs and import levies, though this depends on the efficiency of the refinery.

Regulatory Compliance: Trust the NPA’s oversight. The NPA’s role in inspecting and clearing the refinery is a safeguard. If TOR is operating, it has met the baseline safety and operational standards set by the regulator.

FAQ

Conclusion

The clarification by TOR’s Corporate Affairs Officer, Godwin Mahama, dispels lingering doubts about the refinery’s technical viability. The ability to process Ghana’s sweet crude is not a question of capability but of economic policy and supply chain management. With the completion of Turnaround Maintenance, regulatory clearance from the NPA, and the imminent commissioning of the F-61 furnace, TOR is technically poised to resume its role as a cornerstone of Ghana’s energy infrastructure. The ultimate success of this revival, however, will hinge on the government’s strategic decisions regarding crude sourcing and the commercial model adopted to ensure that the full benefits of this national asset are realized by the Ghanaian people.