The Tema Oil Refinery (TOR) has begun processes to refine crude oil in the country.
This follows a lease agreement with a private investor, Decimal Capital Limited, a leading Kenya-based oil investor.
Decimal Capital Ltd is a private limited liability company offering financial solutions to wide variety of individuals and businesses.
The move, according to a statement issued, is expected to help boost local supply of refined oil products and help stabilize the cedi in the face of the ongoing oil market crisis.
The Interim Management Committee (IMC) constituted by Dr. Matthew Opoku Prempeh, Minister for Energy, engaged Intercontinental Energy Consortium who agreed to partner with TOR by investing US$60 million into the operations of the refinery through a tolling arrangement and recover their investment over five years, information gathered by DGN Online indicated.
A statement issued by Tema Oil Refinery on Thursday June 24, 2022 stated that Decimal Capital Ltd has been selected as the new strategic partner for TOR.
Though TOR’s statement did not give details of the partnership as report indicates that Decimal Capital Ltd is going to be part of the new management to help return the refinery to it former glory.
According to the statement, the deal “is expected to boost the local supply of refined oil products and help stabilize the local currency in the face of the ongoing international oil market crisis.”
“A local Transactional Advisor has been contracted by TOR to lead the negotiations in formulating the lease agreement, which is expected to be completed over the next three to four weeks.”
“The investment partner is expected to provide funding for a first phase, which will bring the Crude Distillation Unit (CDU) of TOR back on stream to refine about 45,000 barrels per day in the next few months,” parts of the release stated.
TOR noted that the agreement will “contribute significantly to improving fuel security” in the country.
“Production from TOR can contribute about a third of the current monthly consumption of diesel, and the full requirement of the Aviation Turbine Kerosene (ATK) and Fuel Oil needs of the country.”
Credit: DGN Online
Read the full statement below
Meanwhile; the Ministry of Energy has refuted claims that the sector Minister Dr Mathew Opoku Prempeh has failed to provide the needed leadership aimed at revamping the Tema Oil Refinery (TOR).
The claim was made by the Institute of Energy Security (IES).
But in a nine-point response, the ministry expressed worry that the IES has not been circumspect in its public pronouncement on energy sector issues.
A statement from the ministry said Dr Prempeh has demonstrated leadership, vision and focus in working towards revamping of TOR and that the claims by the IES is either out of ignorance or deliberate attempt to tarnish the minister’s image.
The ministry said Dr Prempeh is committed to ensuring that TOR is put on a sound footing to support Ghana’s industrialisation drive.
Click here for the full explanation by the Ministry.