TOR granted approval to negotiate with a strategic partner
TOR's indebtedness to be included in negotiations with strategic partner
Management of the Tema Oil Refinery (TOR) have initiated processes to restart operations after being granted approval by the government through the Ministry of Energy to begin negotiations with a strategic partner.
The named private investor is Decimal Capital Ltd.
In a press statement dated June 23, the Management of TOR stated that the proposal by Decimal Capital Ltd best met the needs of the refinery.
The partnership according to TOR means that the supply of locally refined oil products will be boosted which will have a rippling effect on the stabilization of the Ghana Cedis.
“The Government of Ghana, through the Ministry of Energy, has given TOR the go-ahead to negotiate a lease agreement to refine crude oil with a private investor, Decimal Capital Ltd., whose proposals emerged as the most appropriate to meet the needs of the Refinery among the host of proposals that were presented.
“This is expected to boost the local supply of refined oil products and help stabilize the Ghana Cedis in the face of the ongoing international market crisis,” part of the statement read.
It also noted that, “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.”
Once this is completed, Decimal Company Limited is expected to provide funding for the first phase in order for TOR to be able to refine about 45,000 barrels a day.
This is expected to provide a third of the country’s monthly diesel and other fuel needs which will lead to an improvement in fuel security.
“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."
“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. This is expected to thus contribute significantly to improving fuel security”
They added that “Output from Phase One of this partnership project will be used to revamp the Residual Fluid Catalytic Cracker (RFCC) and other associated units of the Company, to maximize production from the Refinery.”
Read the full statement below:
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Tema Oil Refinery