The Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE) Mr. Benjamin Nsiah has called for a review of Ghana’s Petroleum Act to ensure the Tema Oil Refinery (TOR) receives a more reliable share of locally produced crude oil.
According to Mr. Nsiah prioritising domestic crude allocation to TOR is necessary to help restore the refinery’s operations and strengthen Ghana’s refining capacity.
He explained that without a policy framework guaranteeing consistent feedstock supply from local crude production efforts to fully revive the refinery could remain difficult.
Mr. Nsiah also raised concerns about TOR’s plans to source crude oil from countries within the West African sub region arguing that the refinery’s current financial position may not support sustained imports.
“As we speak the cash flow statements of TOR do not guarantee available resources to import these huge volumes,” he stated.
He added that while crude from the Middle East may appear relatively cheaper increased freight and insurance costs could make imports significantly more expensive.
His comments come as TOR continues efforts to stabilise production following years of operational and financial difficulties.The refinery has experienced several shutdowns in recent years due to crude supply shortages ageing infrastructure and mounting debt challenges which have disrupted production activities.
As part of measures to improve operational stability TOR has increasingly turned to sourcing crude oil from within the West African region.
Managing Director Edmond Kombat disclosed that discussions are ongoing on possible reforms to Ghana’s crude allocation system to ensure the refinery receives a more dependable supply of feedstock.
Speaking to journalists in Accra during the Africa Extractives Media Fellowship he noted that the move forms part of broader efforts to reposition TOR after years of financial and operational setbacks.
Mr. Kombat also pointed to external pressures affecting refinery operations including volatility in global crude markets driven by geopolitical tensions involving Iran and the United States as well as rising shipping costs which continue to increase import expenses.
Despite the challenges management says it remains committed to restoring operational stability improving efficiency and securing the long term sustainability of the refinery.