Ghana's Tema Oil Refinery (TOR) will start processing crude oil from Ghana's offshore fields in June 2026. This move aims to increase local value addition and reduce the country's reliance on imported refined petroleum products. President John Dramani Mahama announced this development at a diaspora town hall meeting in London on Sunday.
A shipment of crude oil from Ghana's own oil fields will be delivered to TOR in June 2026 for processing. This initiative marks a return to a strategy introduced during President Mahama's previous administration. The goal is to ensure Ghana derives greater economic benefits from its natural resources by processing them domestically.
This initiative fits into Ghana’s broader economic strategy of industrialization and reducing trade deficits. The country currently exports raw materials like gold, bauxite, and manganese. These are then processed abroad, with finished products later re-imported at higher costs. Local refining aims to reverse this trend. The President emphasized that processing raw materials domestically creates jobs and retains value within Ghana's economy.
President Mahama highlighted the strategic importance of this endeavor for the nation's energy security and economic self-sufficiency. He stated, “We are just about to make history again. We did it in my first term, but after we left office, it didn't continue.” He added, “We are about to start refining our crude. In June, we are delivering a parcel of Ghanaian crude from our own oil fields to the Tema Oil Refinery to process.”
Beyond TOR's revitalisation, significant investments are also planned for Ghana's upstream petroleum sector. Partners in the Jubilee Field have committed to investing an additional $2 billion to drill new wells. This investment aims to increase oil and gas production. Furthermore, ENI will invest another $1.5 billion in the Offshore Cape Three Points (OCTP) project. These commitments signal renewed confidence and potential growth in Ghana's energy sector.
The administration has also addressed past challenges in the energy sector. President Mahama noted that his government inherited an energy sector debt of approximately $1.5 billion. A $500 million World Bank Partial Risk Guarantee, covering payments to ENI and partners for gas from the Sankofa Field, had been depleted. Measures taken by the Ministry of Energy and Ministry of Finance have fully restored this guarantee to $500 million. This restoration has allowed for increased gas supply, which is critical for power generation.
Addressing independent power producers (IPPs), President Mahama stated his government refinanced $1.5 billion in liabilities. The government has established and adhered to a payment schedule. This has stabilised the power sector, with IPPs producing power consistently. These combined efforts signal a concerted strategy to strengthen Ghana's energy independence and overall economic stability.