President John Dramani Mahama has commissioned the refurbished Crude Distillation Unit of the Tema Oil Refinery Limited (TOR), marking the state-owned refinery's return to full operation.
The ceremony also saw the President commission the Residual Fluid Catalytic Cracking Unit (RFCC), a 120-tonne steam boiler number four, a new F-61 Crude Heater and other upgraded facilities on the premises of the country’s only state-owned oil refinery in Tema last Saturday.
The ceremony also marked the official receipt of another one million barrels of Ghana’s Jubilee Medium Sweet crude oil cargo for processing at the facility.
It was the third such consignment received by TOR since May this year.
The refinery has already processed two million barrels of the crude oil into a wide range of refined petroleum products, including gasoline, gas oil, aviation turbine kerosene, liquefied petroleum gas, and premix fuel.
"Today is more than just the commissioning of refurbished refinery units and the receipt of another cargo of Ghanaian crude oil. It is above all a declaration of purpose," President Mahama said.
He added that, "We are here to celebrate the resilience of a nation that refuses to surrender its strategic assets to decay and decline."
TOR revival
The President stated that TOR's revival had disproved the perception that state-owned enterprises could not succeed without privatisation, revealing that the refinery would have been leased out for 15 years for $22 million but for worker resistance.
"TOR has disproved that theory because, as the Minister told you, if not for the bravery of the workers and their resistance, this edifice here, this refined strategic national asset here, would have been leased out for 15 years for $22 million," he said.
He stressed that the turnaround was achieved "without a single cedi from the government of Ghana," with no bailout provided.
"TOR has achieved all this on its own. Government has not bailed them out.
We haven't put a single cedi into this rebound," he said, and commended the board chaired by Nayon Bilijo, the management led by Managing Director Edmond Kombat, staff, the Minister of Energy and Green Transitions, Dr John Jinapor, and strategic partners for the achievement.
“Today, we celebrate more than engineering success.
We celebrate the resilience of a people who chose to rebuild rather than abandon an institution that continues to hold immense strategic value for our nation,” the President said.
President Mahama recalled that in December 2016, the country’s first cargo of Jubilee crude was delivered to TOR after the refinery had processed seven million barrels of crude into finished petroleum products, describing it as a demonstration of the country’s commitment to adding value to its natural resources.
However, he said, the refinery later faced years of challenges, including halted production, debts and declining public confidence, leading to calls for it to be sold or abandoned.
“But I have always believed that nations do not build prosperity by abandoning strategic national assets whenever they face adversity. You do not sell your birthright because maintaining it has become difficult. You restore it. You strengthen it. You make it work again,” he stated.
President Mahama said the revival of TOR fulfilled a commitment he made during the last election campaign to restore the refinery to operation.
Drawing attention to the refinery's strategic importance, the President said local refineries had shielded Ghanaians from fuel disruptions caused by the ongoing Gulf conflict.
"For almost seven months now, there has been a war ongoing in the Gulf between Iran, Israel, and America. That war has caused disruption in many parts of the world. In many countries, people are having to queue for fuel," he said.
President Mahama added that, "Because of TOR's role in refining local crude and making petroleum products available, Ghanaians have hardly felt the effects of the war in Iran. Ghanaians are grateful to you."
Capacity
The President said the rehabilitation works had increased TOR’s processing capability from about 28,000 barrels per stream day towards its original design capacity of 45,000 barrels, with a pathway to achieving 60,000 barrels per stream day.
The President said a fully operational TOR would strengthen Ghana’s energy security, reduce foreign exchange expenditure on imported petroleum products, create jobs and increase value addition.
“Every barrel refined here means less foreign exchange spent importing finished petroleum products. Every young engineer employed here represents hope for Ghana’s industrial future,” he said.
President Mahama, however, cautioned management and workers that sustaining the gains required discipline, accountability and operational excellence.
“Reviving a refinery is one thing. Keeping it operating efficiently, safely and profitably is another,” he said.
The President praised TOR employees for preserving the refinery’s technical knowledge, equipment and future during years of uncertainty, charging the board and management to ensure the facility remained competitive and commercially viable.
Expansion
To consolidate the gains, President Mahama directed the Ministry of Energy and Green Transition and management to develop a strategic plan to expand TOR's refining capacity to 100,000 barrels per stream day and implement reforms to insulate the refinery from political interference.
He said a stronger TOR would play a critical role in supporting the government's 24-hour economy programme and enhancing the country's competitiveness under the African Continental Free Trade Area (AfCFTA).
Production to rise
The Minister of Energy and Green Transitions said although oil production had declined over the years, the government had reversed that trend.
"Crude oil production is going to go up this year," Dr Jinapor said, expressing optimism about the sector's future.
The Managing Director of TOR, in his welcome remarks, said the completion of long-outstanding unaudited financial accounts from 2019 to 2025, the successful receipt and processing of indigenous Ghana crude, and the refinery's return to production were not isolated achievements.
Together, they represent the systematic reset and restoration of Ghana's national refinery capability, Mr Kombat said.
