The Ministry of Energy and Green Transition has explained why Ghana continues to export crude oil produced from its offshore fields while the Tema Oil Refinery (TOR) refines imported crude instead.

According to the ministry, the refinery currently lacks key processing units required to refine Ghana’s crude oil to meet the country’s fuel standards.

Missing processing units

A Technical Adviser at the ministry, Yussif Sulemana, said TOR does not yet have two critical units needed to process crude from Ghana’s offshore oil fields.

He explained that the refinery requires a diesel hydro-treating unit to reduce sulphur content and an isomerisation or reformer unit that would help increase the octane level of petrol.

Without these systems, fuel produced from Ghana’s crude would fail to meet the national petrol specification of 91 Research Octane Number (RON) required for sale on the local market.

Ghana exports premium crude

Ghana’s offshore oil production mainly comes from fields such as the Jubilee Oil Field, TEN Oil Field, and the Sankofa Oil Field.

Dr Sulemana explained that Ghana’s crude is considered premium quality on the international market, making it more profitable to export it and import a cheaper crude type that TOR can refine using its current configuration.

“I don’t think that we are refining what is coming from Jubilee. We are not bound to refine what is coming from Jubilee. Normally, it is the economics that will dictate,” he said.

He added that exporting Ghana’s higher-value crude and refining a cheaper imported product can make more economic sense under the current system.

Plans to upgrade TOR

The government says it is working to upgrade the refinery so it can eventually process Ghana’s crude domestically.

Dr Sulemana revealed that plans are underway to improve the facility’s refining capability and potentially develop a new refinery within the TOR enclave.

“Our effort is to make sure that TOR would be in a better position to refine Ghana crude,” he said.

Fuel supply not immediately threatened

Dr Sulemana also addressed concerns about possible fuel shortages amid rising geopolitical tensions in the Middle East, which have pushed global crude oil prices above 100 dollars per barrel.

He said Ghana is not currently facing an immediate fuel supply crisis, though rising prices remain a concern.

According to him, the country has about five to six weeks of petroleum product stocks available, with additional shipments already at port that could extend supply levels to around ten weeks once discharged.

Dangote refinery discussions

Ghana is also exploring potential supply arrangements with the Dangote Refinery in Nigeria, although officials say prices would still be determined by global market conditions.

Dr Sulemana stressed that the refinery would not offer special discounts simply because Ghana is part of the same regional market.

“Dangote is not pricing because they are within Africa or they are within our sub-region they will subsidise for us. That’s not going to be the case. They are also going to price on the market basis,” he said.

Government reviewing fuel price options

On domestic fuel pricing, the adviser said the government is assessing several options to cushion consumers if global prices continue to rise.

These options include allowing market forces to determine prices, introducing subsidies, or using revenue from crude oil exports to offset higher fuel costs locally.

Authorities, he said, are closely monitoring developments in the global oil market and will adjust policy responses depending on how the situation evolves.