President John Dramani Mahama has directed the Minister for Energy and Green Transition, John Abdulai Jinapor, together with the Board and management of the Tema Oil Refinery (TOR), to develop a strategic roadmap to expand the refinery’s production capacity to 100,000 barrels of crude oil per day .
The directive was announced on Saturday, August 1, during the commissioning of the refurbished refinery at the Tema Industrial Enclave, where the President outlined an ambitious vision to transform the state-owned refinery into a key driver of Ghana’s industrialisation agenda .
The event also marked a significant operational milestone, with TOR successfully processing one million barrels of locally produced Jubilee Field Medium Sweet Crude into finished petroleum products .
‘We Do Not Intend Merely to Keep TOR Operating’
President Mahama said the government’s objective goes beyond restoring operations at the refinery, stressing that TOR must become more efficient, commercially competitive and financially sustainable .
“Our vision for Tema Oil Refinery extends far beyond the successful refurbishment of these facilities. We do not intend merely to keep TOR operating. We intend to make it more competitive. We intend to make it more efficient, and we intend to make it more commercially viable” .
He added that the refurbishment should be viewed as the beginning of a broader national strategy to build an integrated petroleum industry capable of supporting Ghana’s economy and regional trade.
The President noted that the rehabilitation of the Crude Distillation Unit, the restoration of the Residual Fluid Catalytic Cracking Unit, the installation of the new F-61 crude heater and the return of Boiler No. 8 to service represent renewed confidence in Ghana’s industrial capacity .
A History of Decline and Revival
The President recalled TOR’s journey from processing Ghana’s first Jubilee crude oil nearly a decade ago to years of decline that followed . He noted that the first consignment of Jubilee crude delivered amid national optimism was later discounted and sold under what he described as opaque circumstances, and production at the refinery slowed, operations eventually halted, debts accumulated, and confidence among workers gradually declined .
He said the prolonged deterioration led many to conclude that TOR had become an “antique relic of the past” whose most productive years were behind it, with some arguing Ghana should abandon crude oil refining altogether and rely permanently on imported petroleum products .
President Mahama said his government rejected that view, insisting that countries seeking sustainable development do not discard strategic national institutions whenever they face difficulties .
“Because nations that aspire to greatness do not abandon strategic institutions like TOR whenever adversity strikes. What they do is reform them, modernise them, restore them, and prepare them to compete again” .
The refinery, built in the early 1960s under Ghana’s first President, Osagyefo Dr. Kwame Nkrumah, was originally designed with a capacity of about 45,000 barrels per day. TOR accumulated massive liabilities over the years, and by the end of 2024 owed about $517 million, with audited accounts not submitted for six straight years .
Positioning Ghana as West Africa’s Leading Petroleum Hub
President Mahama further disclosed plans to insulate the refinery from political interference through institutional reforms aimed at ensuring long-term operational stability .
“We will also restructure Tema Oil Refinery in order that we permanently eliminate political interference in its work” .
He said government also intends to upgrade TOR’s Single Buoy Mooring (SBM) infrastructure to improve the offloading of crude oil and petroleum products, while positioning Ghana as West Africa’s leading petroleum refining, storage and logistics hub .
“Our work does not end with restoring TOR. Our vision is to transform Ghana into West Africa’s leading petroleum refinery, storage and logistics hub, adding value to our natural resources, creating jobs, strengthening energy security and driving industrial growth” .
Supporting the 24-Hour Economy Agenda
According to the President, the refinery will play a pivotal role in delivering the government’s 24-Hour Economy policy and the Accelerated Export Development Programme by supporting manufacturing, industrial production, exports and job creation under the African Continental Free Trade Area (AfCFTA) .
President Mahama also welcomed confirmation by TOR Managing Director Edmond Kombat that the refinery is already operating on a 24-hour basis . He announced that government would soon roll out incentives for businesses operating round the clock, including tax relief, favourable energy tariffs and duty-free importation of capital equipment for plant expansion .
“We are going to give you incentives in terms of tax breaks, in terms of energy tariffs, but more importantly, when you import capital goods for plant expansion or installation of new plants, we will allow you to bring them in tax and duty-free,” he said .
The planned expansion of TOR’s refining capacity forms part of a broader strategy to strengthen Ghana’s energy security, reduce reliance on imported petroleum products and establish the country as a competitive petroleum processing and logistics hub in the sub-region .
