…10-year dormancy ended
President John Dramani Mahama has officially commissioned the refurbished Crude Distillation Unit (CDU) at the Tema Oil Refinery (TOR), reviving the state-owned refinery after years of inactivity.
The rehabilitation, which includes the installation of the state-of-the-art F-61 crude heater furnace and other critical infrastructure, aims to increase the refinery’s crude processing capacity from about 28,000 barrels to between 45,000 and 55,000 barrels per stream day.
The Minister for Energy and Green Transition, Dr John Abdulai Jinapor, disclosed that the government had halted plans to lease the Tema Oil Refinery for US$22 million over 10 years, opting instead to rehabilitate the state-owned refinery using local expertise and strategic partnerships.
He said the decision followed a directive from President John Dramani Mahama to restore the refinery rather than hand it over to private operators.
Dr Jinapor revealed that within six months, the management of TOR mobilised US$22 million to finance the rehabilitation works without direct government financial support.
The upgraded facility is also expected to reduce Ghana’s dependence on imported refined petroleum products and enhance local value addition.
Commissioning the refurbished facility in Tema on Saturday, August 1, 2026, President Mahama described the occasion as a historic milestone in the country’s industrial development, saying it marked the restoration of one of Ghana’s most strategic national assets.
He noted that the refinery, which had endured years of operational setbacks, mounting debt and deteriorating infrastructure, had now been restored through the determination of its Board, Management, workers and strategic partners.
The President said the revival of TOR had disproved the long-held belief that state-owned enterprises could not be successfully managed without privatisation.
According to him, the turnaround was achieved without any direct financial bailout from the Government of Ghana.
“Today is more than just the commissioning of refurbished refinery units. We are here to celebrate the resilience of a nation that refuses to surrender its strategic assets to decay and decline,” he stated.
President Mahama said the successful rehabilitation of the refinery aligned with the government’s RESET Agenda, which aims to restore confidence in public institutions, promote industrialisation and create sustainable jobs.
He disclosed that the refinery had resumed operations in December 2025 and had since processed millions of barrels of crude oil, including Ghana’s indigenous Jubilee Medium Sweet Crude, into petroleum products for the local market.
The President said the government remained committed to expanding the refinery’s capacity and positioning TOR as a competitive petroleum-refining hub within the West African sub-region.
He emphasised that strengthening domestic refining capacity would improve Ghana’s energy security, conserve foreign exchange, and support the country’s 24-Hour Economy initiative.
President Mahama commended the Board of Directors, Management, staff and strategic partners of TOR for their resilience and professionalism in restoring the refinery to operation.
He expressed optimism that the rehabilitation of the Crude Distillation Unit would mark the beginning of a new era for the refinery and reaffirmed the government’s commitment to further investment to make TOR commercially sustainable and globally competitive.
The Minister for Energy and Green Transitiondescribed the commissioning as the outcome of a deliberate government policy to revive one of Ghana’s most strategic national assets and strengthen the country’s energy security.
The Minister commended the Management and workers of TOR for their dedication and professionalism, noting that he did not encounter any expatriate staff during his visit to the refinery. He said that the determination and commitment demonstrated by the Ghanaian workforce convinced him that the refinery could be restored successfully.
Dr Jinapor also reaffirmed the government’s commitment to ensuring a reliable supply of crude oil to support TOR’s operations and assured the refinery’s strategic partners, Fujairah Group and Triangle Group, of the Ministry’s continued support.
The Minister said the government remained committed to making Ghana self-sufficient in petroleum products while positioning the country to export refined products to neighbouring states.
Providing an update on the upstream petroleum sector, Dr Jinapor announced that Ghana had reversed years of declining crude oil production, adding that crude oil output, which had recorded continuous declines over the past five years, was expected to increase this year due to ongoing government interventions.
Dr Jinapor also noted that TOR had made significant progress in improving its financial position, revealing that the current management had completed and published seven years of outstanding financial accounts.
On his part, the Managing Director of Tema Oil Refinery, Edmond Kombat, said the revival of TOR demonstrates that determined leadership, sound policy and technical expertise could restore even the most challenged state institutions.
He disclosed that the refinery resumed operations on December 19, 2025, following the successful completion of the turnaround maintenance of the Crude Distillation Unit.
According to him, since May 2026, TOR has successfully received and processed three separate one-million-barrel cargoes of crude oil, including Ghana’s Jubilee Medium Sweet Crude, marking the first time in many years that Ghanaian engineers have refined Ghanaian crude locally.
“For a nation that has exported crude oil for more than 15 years while importing refined petroleum products, this represents a profound turning point in our industrial history,” he stated.
Mr Kombat revealed that TOR has also returned to profitability after nearly a decade of continuous financial losses, recording a Profit Before Tax exceeding GH¢1 billion for the 2025 financial year.
He attributed the financial turnaround to improved operational efficiency, stronger financial discipline, reduced receivables and the completion of long-outstanding audited financial accounts.
