Energy Strategist and Senior Oil Production Specialist, Dr Yussif Sulemana, has suggested to government that, it ought to consider privatizing the Tema Oil Refinery (TOR) in order to keep the refinery operational.
He posited that, government must consider diversifying the management of the infrastructure, in order to become more operational.
“If we think as a government we cannot manage this critical infrastructure, let’s diversify. Let’s bring in private sector players to invest in the refinery. That is the way to go. But if we leave it as it is now, then we are going to go around the circle that will keep on changing managing directors.”
Elaborating on his suggestion, he intimated that, for such an entity that can play a major role in ensuring the country is energy efficiency, all options must be considered to make it fully operational and functional.
He further urged that, the government has to stop the interference in order for the refinery bounce back to its full operational activities.
“Until we stop that interference, we are not going to see the refinery seeing the light of day. So, the refinery is on its knees basically because, one, the political leadership required for the refinery to run is not there. That political leadership is that the government of the day has to stop unnecessary interference in the day-to-day activities of the refinery.”
He added that, there is going to be a challenge if the government does not agree to let give space for the refinery to operate.
“In fact, government of the day has no business in the refinery, why? The private sector can do that. So, if you cannot allow the private sector to do that then don’t keep on changing Managing Directors up and down because it is still in government hands. As long as government is managing it, and government is not agreeing to give free space for operation to happen for the refinery to operate profitably, then, it’s going to be difficult.”
The Chamber of Petroleum Consumers (COPEC), some months ago also called on government to invest in the Tema Oil Refinery (TOR) to prevent it from collapsing as COPEC investigations showed that the situation at the refinery is dire and maintaining its day to day operations has become a challenge.
The chamber urged that efforts must be made at all cost to save the country’s only refinery from turning into a “white elephant”.
The Tema Oil Refinery (TOR) is Ghana’s first and only refinery, but has not been working consistently due to financial challenges among others.
The refinery ceased being consistently operational two years ago due to lack of crude oil which serves as raw material for the refinery and the managements’ inability to raise letters of credit to import crude oil for processing.
The Workers Union of the refinery also in November called for the dissolvement of the board of Directors of the refinery over its incompetent management of the refinery.
Among other things, the workers said the board has made no significant contribution to the growth of the company adding that, aside the minimal production that goes on in the refinery there hasn’t been any major production for close to two years.
