President John Dramani Mahama has commissioned the refurbished Crude Distillation Unit (CDU) of the Tema Oil Refinery Limited (TOR), bringing the strategic state-owned facility back into full operation. This significant event also marked the processing of 1 million barrels of locally produced Jubilee Field Medium Sweet Crude oil into finished products by the facility. The President emphasized that the rehabilitation was achieved without a single Ghana cedi from the government, demonstrating a renewed confidence in Ghana’s industrial capacity.
The successful refurbishment included the restoration of residual fuel fluid catalytic cracking units, installation of a new F-61 crude heater, and the return of boiler number eight to service. These engineering achievements are crucial for TOR's operational efficiency and its ability to refine crude oil. The return to full production capacity is expected to significantly reduce Ghana's reliance on imported petroleum products, bolstering national energy security.
This development fits into Ghana's broader economic strategy of industrialization and value addition to its natural resources. The vision aligns with the original intent of Ghana's first President, Osagyefo Dr. Kwame Nkrumah, who established the refinery in 1963. The successful revamp of TOR challenges the perception that state-owned enterprises cannot operate efficiently without privatization or government bailouts, offering a model for other struggling public entities.
President Mahama commended the bravery of TOR workers and their resistance against previous attempts to lease the strategic national asset for 15 years for 22 million dollars. He specifically praised Dr. John Jinapor, the Minister of Energy and Green Transition, Mr. Nayon Bilijo, the Board Chairman of TOR, and Mr. Edmond Kombat, the Managing Director of TOR, for their leadership. The President stated, “TOR has achieved all this on their own. The government has not bailed them out. We haven’t put a single Cedi into this rebound.”
The implications of TOR's full operational return are substantial for Ghana's economy. Increased local refining capacity will likely lead to a more stable supply of petroleum products and potentially lower prices for consumers, as import costs are reduced. Decision-makers will be watching how TOR sustains this momentum and whether it can consistently process crude without government financial intervention. This success story could also encourage further investment in other state-owned enterprises, promoting local content and job creation.
Since May this year, TOR has successfully received and processed three separate 1 million barrel cargoes of crude oil. These include Bonga crude, Baleine crude, and Ghana’s own Jubilee Medium Sweet Crude. Mr. Edmond Kombat, Managing Director of TOR, confirmed that TOR fully paid for the Ghanaian crude, underscoring the refinery's financial independence. This commitment ensures that Ghana's petroleum resources are processed domestically, adding value within the country and creating economic opportunities for its citizens.
The completion of long-outstanding unaudited financial accounts from 2019 to 2025 further highlights the systematic reset and restoration of the national refinery’s capabilities. This financial transparency is critical for investor confidence and for TOR's long-term sustainability. The refinery's ability to operate profitably and independently will be a key indicator of its continued success and its contribution to Ghana's economic resilience.