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Business News Mon, 2 May 2022

Government rehabilitating Tema Oil Refinery to help address fuel price hikes - Akufo-Addo

Get TOR to run efficiently to solve fuel price hikes - Experts to government

President Akufo-Addo addresses workers during May Day celebrations

Private sector urged to establish refineries across Ghana


Government has disclosed that it is rehabilitating the Tema Oil Refinery which has not been fully operational for a number of years.

According to President Nana Addo Dankwa Akufo-Addo, the move to rehabilitate the state-owned refinery forms part of efforts to stabilise the prices of petroleum products in the country.

Speaking at this year’s May Day celebrations in Accra, President Akufo-Addo said “Intense efforts are being made to rehabilitate the Tema Oil Refinery, to enable it contribute to stabilizing petroleum prices, which should see the light of day very soon.”

He further urged private sector firms operating in the country to make investment in the oil sector and support the establishment of new refineries across the country.

“We are also encouraging private companies to establish refineries in the country, one of which is eighty percent (80%) complete and its expected to be commissioned before the end of the year,” he added.

Meanwhile, Minister of Public Enterprises, Joseph Cudjoe had earlier disclosed government had begun receiving a number of proposals from potential strategic investors for a probable restructuring of the Tema Oil Refinery (TOR).

The state-owned oil refinery has not been operating for a number of years due to an array of technical challenges and managerial setbacks. Due to this, there have been various calls from stakeholders to get strategic investors to ensure the refinery is running again.

Joseph Cudjoe in an earlier interaction with Accra-based Citi FM said the proposals being received at the moment from potential strategic investors seeks to offer funding and technological skills for the operation and management of the refinery.

“At the moment, the Ministry of Energy is receiving proposals from potential strategic investors for restructuring, and so we are looking at that window where the strategic investors can bring in the necessary funds, technical expertise and technologies for it to operate as expected. At the moment, it is not operating at the level it is expected to operate at,” he is quoted to have said by Citinewsroom.com

The Tema Oil Refinery is a wholly-owned Ghanaian entity that has been refining crude oil since 1963. It has the capacity to produce 45,000 barrels per stream day but is currently producing about 26,000 barrels.

The refinery, situated in Tema, was originally named the Ghanaian Italian Petroleum (GHAIP) Company and incorporated as a private limited liability company under the Companies Ordinance (Cap 193) on December 12, 1960.

It was 100 percent owned by the ENI Group (Ente Nationalise Indrocarburi) of Italy until the government of Ghana bought all the shares of GHAIP in April 1977 and became the sole shareholder.



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Source: www.ghanaweb.com
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