Tullow Oil has commenced selling crude oil from Ghana’s Jubilee and TEN fields to domestic refineries. This strategic shift aims to foster a local market for Ghana’s petroleum resources, reducing the nation’s dependence on imported refined fuels.
The London-listed producer completed its first commercial sale to Sentuo Oil Refinery earlier in 2026. This initial transaction involved approximately 1 million barrels of Jubilee crude, delivered to Sentuo’s facility in Tema. Richard Miller, Tullow’s Chief Financial Officer, highlighted this as a significant achievement for Ghana’s oil sector.
This development marks a notable change in Ghana’s oil industry structure. Since commercial production began in 2010, most crude from Ghana’s offshore fields has been exported. Meanwhile, Ghana has continued to import substantial volumes of petrol, diesel, aviation fuel, and liquefied petroleum gas. Selling crude locally creates a more direct link between Ghana’s upstream production and its downstream refining industry, aligning with national economic goals.
Mr. Miller confirmed that the Sentuo transaction was conducted under commercial terms, not through an administrative crude allocation. He noted, “Sentuo Oil has become one of the prolific buyers of crude not only from Tullow Oil alone but also from other partners on Ghana’s oil fields.” This underscores the market-driven nature of the new arrangement. The Energy Minister, John Abdulai Jinapor, also stated that this achievement represents a deliberate national policy decision to deepen local value addition.
The implications for Ghana’s economy are substantial. The potential foreign exchange benefit comes from reducing freight, insurance, and trading costs associated with importing finished petroleum products. It also allows Ghana to retain refining margins and related economic activity within its borders. Sentuo’s refinery currently has a processing capacity of about 40,000 barrels per stream day, with plans for future expansion. The state-owned Tema Oil Refinery (TOR) has also resumed refining activities after rehabilitation work on its crude distillation unit, further bolstering domestic processing capabilities.
For the refinery, proximity to local crude sources offers logistical advantages. However, Ghanaian crude is still priced against international benchmarks, meaning local refiners must secure financing and pay commercially competitive prices. Domestic crude is not inherently cheaper. The scale of economic benefits will depend on refinery efficiency, product yields, financing costs, and the payment structure agreed with suppliers. If both Sentuo and TOR operate consistently, the government believes they could meet a substantial proportion of Ghana’s refined product requirements, shortening the petroleum supply chain and providing some insulation from international market disruptions. This initiative supports the government’s broader strategy of expanding domestic petroleum processing and enhancing energy security, as articulated by Minister Jinapor.
Tullow remains heavily dependent on Ghana for its production and cash generation. The company anticipates 14 crude cargoes from its Ghana operations in 2026, comprising 11 from Jubilee and three from TEN. This includes two additional Jubilee cargoes compared to guidance issued in November 2025. Six cargoes were lifted during the first half of the year, with eight more expected. This consistent supply is crucial for sustaining domestic refining efforts and achieving Ghana’s energy independence goals. The success of this model will depend on reliable financing, competitive processing, and sustained crude production from Ghana’s oil fields.