The Tema Oil Refinery (TOR) is in urgent need of investment to undergo a full revamp and restore its operations to full capacity, according to the Managing Director, Dr. Yussif Sulemana.
His statement comes at a time when Ghana’s petroleum sector faces persistent challenges such as rising fuel prices, heavy reliance on imports, and underutilization of domestic refining capacity.
“If we get like $25 million as we speak now, we can be able to run the facility.
“What we need is a revamping to be able to get the refinery back to operate to churn out products that can compete with international standards.”
Dr. Yussif Sulemana, MD of TOR
Dr. Sulemana emphasized that without immediate financial intervention, TOR will continue to operate below capacity, increasing Ghana’s dependency on imported refined petroleum products.
He underscored the importance of restoring the refinery to optimal performance, explaining that a fully functional TOR would not only help stabilize fuel prices but also ensure the production of high-quality petroleum products.
To facilitate the refinery’s revival, Dr. Sulemana disclosed that seven companies have expressed interest in investing in TOR, each offering different levels of financial and technical commitment.
“A credit partner will come and partner with us, and some are interested in doing everything.
“Some want to take up the entire facility of the refinery just to revamp it.”
Dr. Yussif Sulemana, MD of TOR
The government and industry stakeholders are expected to carefully evaluate these proposals to ensure that any partnership aligns with Ghana’s broader energy security and economic objectives.
Once a key pillar in Ghana’s energy sector, TOR has faced significant operational challenges in recent years, primarily due to financial mismanagement, aging infrastructure, and technical inefficiencies.
The refinery has struggled with frequent shutdowns, forcing Ghana to rely heavily on fuel imports to meet domestic demand.
At its peak, TOR had the potential to refine up to 45,000 barrels per day, covering a significant portion of Ghana’s fuel needs.
However, years of underinvestment have led to a drastic reduction in its refining capacity, making the country vulnerable to global oil price fluctuations and foreign exchange volatility.
Long-Term Sustainability Measures
While the $25 million revamp is a necessary short-term solution, industry experts stress that long-term sustainability measures must be implemented to prevent TOR from falling into another cycle of inefficiency and financial distress.
Dr. Sulemana stressed the need for a structured maintenance plan to ensure that the refinery remains operational once it is revived.
“Beyond securing funds, we must establish a proper maintenance regime to sustain operations and avoid future shutdowns.”
Dr. Yussif Sulemana, MD of TOR
Experts also advocate for stronger governance and accountability measures to prevent financial mismanagement and ensure that revenues generated from TOR’s operations are reinvested into its long-term sustainability.
The government’s role in facilitating TOR’s revival is critical, and policymakers are expected to explore viable funding options, including public-private partnerships (PPPs) and external financing arrangements.
Given Ghana’s current economic challenges, attracting credible investors while ensuring transparency and accountability will be essential.
Dr. Sulemana remains hopeful that with the right funding and investment strategy, TOR can become a competitive player in the global refining market.
“We have the potential to refine petroleum products that meet global standards, and we are committed to making that happen.”
Dr. Yussif Sulemana, MD of TOR
Industry experts and policymakers agree that the time for action is now. With fuel prices fluctuating and global supply chains facing uncertainty, revitalizing TOR is not just an economic necessity but a strategic move to secure Ghana’s energy future.
As Ghana waits for decisive action on TOR’s revival, the outcome of these investment negotiations could determine the refinery’s future role in the country’s petroleum industry.
If the right decisions are made, TOR could once again become a vital asset in Ghana’s energy sector, ensuring stable fuel supply and economic growth.
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