Decimal Capital Limited to provide funding for first phase of TOR revamp
Government rehabilitating Tema Oil Refinery to help address fuel price hikes - Akufo-Addo
The Tema Oil Refinery (TOR) is expected to restart operations in the coming months to help boost the domestic supply of refined oil products in the wake of the ongoing global oil market crisis.
The state-owned refinery when fully operational is expected to produce some 45,000 barrels of oil per day.
A statement issued by the Management of the firm said the development comes after it secured government’s approval to negotiate a Lease Agreement to refine crude with support from a private investor, Decimal Capital.
It added that the proposal by Decimal Capital Limited however best met the needs of the refinery.
“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.”
The Management of TOR added that once this is completed, Decimal Company Limited is expected to provide funding for the first phase of operations in order for TOR to be able to refine about 45,000 barrels a day.
“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," the statement said.
Meanwhile, TOR said 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 which will have a rippling effect on the stabilization of the Ghana Cedi.
“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”
It concluded, “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.”
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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The Tema Oil Refinery (TOR)