Former President John Mahama has announced plans to revitalize Ghana’s ailing oil refinery through a joint private-public partnership. Speaking at a meeting with key stakeholders in the petroleum downstream sector in Accra, Mahama emphasized that the Tema Oil Refinery (TOR) would receive thorough attention under his next administration.
“We need to look again at how we can bring the refinery back in place. But I do think that the problems we have with running that refinery is because it is a state-owned enterprise. And we all know the inefficiencies that go with state-owned enterprises. And so we are open to private partnership in terms of bringing that refinery back into operation and running it, but we think that whatever private partnership or private participation is invited, it must come through a transparent process,” Mahama said.
Ghana’s premier refinery, TOR, has been a cornerstone of the nation’s oil industry since its establishment in 1963. However, the refinery has faced significant operational and financial challenges in recent years, threatening its viability and future. The refinery’s struggles can be attributed to a combination of aging infrastructure, inconsistent crude oil supply, and financial mismanagement.
The equipment at TOR has aged significantly, leading to frequent breakdowns and unplanned shutdowns, severely impacting production efficiency. Financial mismanagement has also played a critical role in TOR’s decline, with accumulated debts stemming from unpaid loans and operational deficits hampering the refinery’s ability to invest in much-needed upgrades and maintenance.
