The Tema Oil Refinery (TOR) has been granted approval to refine crude oil with a private investor, Decimal Capital Limited.
Management of the refinery, in a statement, explained that Decimal’s proposal emerged as the most appropriate to meet the needs of the Refinery among the host of proposals presented.
The approval by the government formed part of the concrete steps taken by TOR to restore the country’s premier refinery to business within the next few months, it explained.
Management added that the investment partner was expected to provide funding for a first phase, which would bring the Crude Distillation Unit of TOR back on stream to refine about 45,000 barrels per day in the next few months.
“This is expected to boost the local supply of refined oil products and help stabilise the Ghana Cedi, in the face of the ongoing international Oil market crisis,” the statement said.
Management said production from TOR could contribute about a third of the current monthly consumption of diesel, and the full requirement of the Aviation Turbine Kerosene and Fuel Oil needs of the country, “this is expected to thus contribute significantly to improving fuel security.”
The statement said output from phase one of the partnership project would be used to revamp the Residual Fluid Catalytic Cracker and other associated units of the Company, to maximise production from the refinery.
It added that a local Transactional Advisor had been contracted by TOR to lead the negotiations in formulating the lease agreement, which it said was expected to be completed over the next three to four weeks.