Management of the Tema Oil Refinery (TOR), has begun processes to get an investor to develop a 3.5 billion dollar modern refinery, the Greenfield facility in Prampram.
The new facility will increase TOR’s capacity by 200 percent from the current 45,000 barrels of crude refined daily to 120,000 barrels.
The state-owned refinery has been making loses for several years. Major challenges facing the company include non-availability of crude the frequent breakdown of machines due to poor maintenance culture.
The current facility has not seen any maintenance since 2009, until it was shut down in March. Full operations however began in April 2018.
The modern refinery, when completed can refine up to 150,000 barrels of crude oil every day.
The company is also seeking some funds to upgrade the current refinery which after completion will increase current capacity of 45,000 barrels of crude refined to 60, 000 barrels.
If successful, TOR can refine up to 120,000 barrels of crude per day, which will meet the country’s current daily demand of 85,000 barrels with an extra 35,000 barrels to be considered for exports.
Managing Director of TOR, Isaac Osei is confident the new facility will make his outfit more competitive and profitable.
“TOR has engaged several partners. We’ve appointed a transactions advisor to advise us and look at the alternative, “he told Citi Business News.
According to him, the company is also preparing to begin a feasibility studies to enable it put together information that reflects the financial status of the company.
“We will then consult the Ministry of Finance and sector Ministry, the Energy Ministry to settle on an investor, “he added.
The move will also bring some relief to both management and staff of the facility who have experienced several shut downs.
The Energy Minister, John Peter Amewu yesterday toured the facility to ascertain some of the challenges affecting the company. After the tour the minister to the press he will do all he can to make sure the company becomes commercially viable.
“ Government’s current policy direction is to make sure TOR is back and TOR must work regularly, this procedure of intermittent operation takes a lot of money.
He noted that government was looking at alternative areas for regular crude supply at a reduced price.
The Tema Oil Refinery currently supplies just about 15 percent of domestic demand for petroleum products.
The remaining 85 percent is served through imports by Private Petroleum Buying Companies.