The Executive Director of the Centre for Environmental Management and Sustainable Energy, Benjamin Nsiah, is calling for a review of Ghana’s Petroleum Act to guarantee a more consistent allocation of locally produced crude oil to the Tema Oil Refinery (TOR).
He says prioritising domestic crude supply is critical to reviving the refinery and strengthening Ghana’s refining capacity.
Mr. Nsiah argues that without a policy shift to ensure TOR receives feedstock from local production, efforts to restore full operations will remain constrained.
He also expressed doubts about the refinery’s ability to sustain plans to source crude oil from the West African sub-region, citing concerns over TOR’s financial position.
“As we speak, the cash flow statements of TOR do not guarantee available resources to import these huge volumes,” Mr. Nsiah said.
According to him, the refinery may struggle to consistently secure crude supplies from the regional market at a time of rising global energy and shipping costs.
“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 comments come as TOR continues broader recovery efforts aimed at stabilising output after years of operational challenges.
The refinery has faced repeated shutdowns in recent years due to crude shortages, ageing infrastructure and rising debt levels, which have periodically forced cuts in production.
As part of its turnaround strategy, TOR is increasingly sourcing crude oil from West Africa to support more stable operations.
Managing Director Edmond Kombat said discussions were ongoing on how Ghana’s crude allocation system could be restructured to ensure a more reliable supply of feedstock.
Speaking to journalists in Accra from the Africa Extractives Media Fellowship, he said the move forms part of wider efforts to reposition the refinery after years of financial and operational difficulties.
He also cited external pressures, including volatility in global crude markets linked to geopolitical tensions involving Iran and the United States, as well as rising shipping costs that have increased import expenses.
Despite the challenges, management says it remains committed to restoring operational stability and improving efficiency as part of efforts to secure TOR’s future.
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Source: www.myjoyonline.com