Tema Oil Refinery Defends Ability to Refine Local Crude

Tema: Tema Oil Refinery (TOR) has asserted its technical capability to refine domestic crude oil, addressing claims that Ghana's sole refinery cannot process crude from the nation's offshore oil fields. In a statement signed by Corporate Affairs Executive Godwin Mahama, TOR emphasized that technical studies and crude assays have confirmed the compatibility of Ghana's light sweet crude, especially from the Jubilee and TEN fields, with the refinery's existing setup.

According to Ghana Web, TOR stated that it is capable of producing gasoline, diesel, jet fuel, kerosene, and other petroleum derivatives from Ghanaian crude. The refinery highlighted its previous experience processing crude from the TEN field in 2016, demonstrating its operational ability to handle locally produced oil. The API gravity of Jubilee and TEN crudes aligns well with TOR's refining system, reinforcing the refinery's claim that Ghanaian crude can be processed domestically.

The statement is a response to ongoing public debate about the refinery's capacity to process crude from Ghana's offshore fields. While the country exports most of its crude from the Jubilee, TEN, and Sankofa fields, it imports refined petroleum products to satisfy domestic fuel needs. After several years of inactivity due to financial issues, accumulated debt, and aging infrastructure, the refinery resumed operations in late 2025. Initially commissioned in 1963 with a capacity of around 45,000 barrels per day, TOR is currently ramping up its output following maintenance and stabilization efforts.

Officials aim to restore TOR to full capacity and pursue upgrades to expand its processing capabilities and bolster its role within Ghana's downstream petroleum sector. The refinery emphasized that refining Ghanaian crude locally would yield strategic and economic benefits, including reducing reliance on imported petroleum products, enhancing national energy security, and conserving foreign exchange.

TOR further argued that domestic refining would increase value addition in Ghana's petroleum sector and drive broader industrial activity. The statement noted that increased local refining will stimulate employment, strengthen the downstream petroleum industry, and support national industrialization efforts.

Ghana's downstream petroleum sector has long relied on imports of refined products, a dependency that subjects the country to global price fluctuations and foreign exchange pressures. Advocates of domestic refining suggest that processing crude locally could mitigate these vulnerabilities while expanding industrial capacity.

TOR disclosed that plans are advanced to pivot toward refining Ghanaian crude as part of efforts to stabilize fuel supply. The refinery remains committed to collaborating with the government, upstream producers, regulators, and industry stakeholders to maximize the domestic utilization of Ghana's crude resources. Such collaboration is deemed essential for expanding local refining activity and ensuring efficient use of Ghana's crude resources.

The refinery continues to pursue operational improvements and strategic partnerships to restore full operational capacity. Despite recent shutdowns and operational challenges, including financial constraints and aging infrastructure, TOR remains dedicated to playing a significant role in Ghana's energy sector.

'Tema Oil Refinery remains committed to efficiency and national service as it works to contribute meaningfully in Ghana's petroleum value chain,' Mahama stated. Strengthening domestic refining capacity is expected to position TOR as a key driver of Ghana's long-term energy security and economic development.