The Managing Director of Tema Oil Refinery (TOR), Edmond Kombat, has disclosed that the government is working to amend the law to enable the refinery to purchase Ghanaian crude oil in cedis instead of United States dollars.
The proposed amendment is expected to provide a legal framework for TOR to buy locally produced crude oil using the local currency, potentially reducing its exposure to foreign exchange requirements in sourcing raw materials for its operations.
Mr Kombat made the disclosure at the Government Accountability Series forum, where he outlined efforts to revive TOR, strengthen its operations and expand its role in Ghana’s petroleum industry.
Although he did not provide a timeline for the proposed amendment, his remarks indicate that the government is considering policy and legislative measures to support the refinery’s operations and improve the utilisation of locally produced crude oil.
The move comes amid broader efforts to strengthen state-owned enterprises and reduce their reliance on foreign currency for domestic transactions.
Mr Kombat said recent developments at TOR demonstrate that state-owned institutions can operate efficiently and profitably when supported by appropriate policies and effective management.
He said some international institutions and development partners appeared impressed by the refinery’s progress, particularly in demonstrating that a state-owned enterprise could operate without consistently recording losses.
According to him, the experience challenges some of the traditional prescriptions offered to developing countries on the management of state institutions.
“It looks like they are changing their literature because most of those prescriptions that they give actually haven’t helped developing countries,” he said.
He added that Ghana is beginning to demonstrate that state institutions could work effectively and profitably under the administration of President John Dramani Mahama.
Mr Kombat, however, indicated that TOR would remain cautious despite the positive reception it had received from visiting officials and other stakeholders.
His comments formed part of a broader account of the refinery’s efforts to improve its operations and contribute to the government’s economic agenda.
The TOR Managing Director also highlighted the refinery’s growing cooperation with countries in the Sahel, particularly Burkina Faso, as part of efforts to expand petroleum trade through Ghana.
He said the proportion of petroleum products transported through Ghana to Sahelian countries has increased significantly, rising from approximately 15 per cent in 2024 to about 40 per cent currently, according to figures he presented at the forum.
Mr Kombat attributed the development partly to the government’s efforts to strengthen regional cooperation and facilitate the movement of petroleum products through Ghana.
He said President Mahama has specifically directed TOR to work closely with the Sahelian countries to support their petroleum supply requirements.
According to him, Burkina Faso has been an important partner in the initiative, with its national oil company, Sonabhy, playing a central role in the country’s petroleum supply chain.
He explained that officials of the company, including its board chairman and managing director, had visited Ghana and held discussions with the sector minister.
He added that Ghana’s minister responsible for energy is also working closely with his counterpart in Burkina Faso to strengthen cooperation between the two countries.
At the institutional level, TOR was collaborating with relevant agencies to facilitate the movement of petroleum products and support the supply arrangements.
Mr Kombat said the refinery has assisted its partners in ensuring that petroleum products could be transported through Ghana to their destinations.
Mr Kombat further disclosed that Burkina Faso is among the major beneficiaries of TOR’s 24-hour operational arrangements, which support the movement of petroleum products beyond conventional working hours.
He said between 200 and 400 trucks entered Ghana daily in connection with the transportation of petroleum products, highlighting the scale of the cross-border trade and the logistical activities associated with it.
According to him, the continuous movement of trucks has created an important link between Ghana’s petroleum infrastructure and the supply needs of neighbouring Sahelian countries.
He noted that the collaboration is ongoing, with Burkina Faso purchasing some petroleum products directly from TOR.
The arrangement, he said, is helping to strengthen the refinery’s commercial activities while positioning Ghana as an important transit point for petroleum products destined for landlocked countries in the sub-region.
The development also underscores the potential of regional petroleum trade to support the utilisation of Ghana’s energy infrastructure and deepen economic cooperation with neighbouring countries.
TOR has been central to discussions about the future of Ghana’s downstream petroleum industry, particularly regarding the need to improve its operational capacity, financial performance and competitiveness.
The proposed legal amendment to permit cedi-denominated purchases of Ghanaian crude oil could form part of a broader strategy to improve the refinery’s access to locally produced crude and manage the foreign exchange demands associated with its operations.
However, the practical impact of the proposal will depend on the details of the amendment, the applicable pricing arrangements and the terms under which crude oil producers would be willing and able to sell to the refinery in cedis.
Mr Kombat did not provide further details at the forum on the proposed legislative changes or indicate when they would be introduced.
Nevertheless, his remarks highlight the government’s stated commitment to supporting TOR’s revival while expanding Ghana’s role in the regional petroleum trade.
The refinery’s ability to sustain profitable operations, increase the supply of petroleum products to regional markets and improve its crude oil procurement arrangements will be important measures of progress as the government pursues its broader economic and industrial objectives.
By 1960news.com
