The Tema Oil Refinery (TOR) says it is in negotiation with a private investor, Decimal Capital Ltd, to refine crude oil in Ghana.
This, according to the refinery, will boost the local supply of refined oil products and help stabilise the cedi in the face of current international oil market crisis.
Decimal Capital Ltd is expected to provide funding to re-tool TOR to refine forty-five thousand barrels per day in the refinery’s first phase of operations.
In a statement, TOR says, a local transaction advisor has accordingly been contacted to lead the negotiations in formulating the agreement with the private investor.
“Tema Oil Refinery (TOR) has taken concrete steps to restore the country’s premier Refinery back to business within the next few months.
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 proposal 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 Cedi, in the lace 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.
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.
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.”