John Mahama, the flagbearer of the National Democratic Congress (NDC), has made a compelling promise to revamp the Tema Oil Refinery (TOR) if elected president in the December 7, 2024, general elections.
Speaking at a meeting with key stakeholders in the petroleum downstream sector in Accra, Mahama outlined a strategic plan to rejuvenate Ghana’s premier oil refinery through a joint private-public partnership.
“We need to look again at how we can bring the refinery back in place,” Mahama said, highlighting the need for innovation and efficiency. He acknowledged the inefficiencies typically associated with state-owned enterprises and emphasized the potential benefits of private sector involvement. “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,” he added.
Established in 1963, the Tema Oil Refinery has been a cornerstone of Ghana’s oil industry, crucial for meeting the nation’s petroleum needs. However, in recent years, TOR has struggled with operational and financial challenges that threaten its viability. Aging infrastructure, inconsistent crude oil supply, and financial mismanagement have all contributed to the refinery’s decline.
The equipment at TOR, much of it operating well beyond its intended lifespan, has led to frequent breakdowns and unplanned shutdowns, severely impacting production efficiency. Additionally, accumulated debts from unpaid loans and operational deficits have hampered the refinery’s ability to invest in necessary upgrades and maintenance.
Mahama’s proposal aims to address these issues by leveraging private sector efficiency and investment while ensuring a transparent and fair partnership process. This initiative is seen as a critical step towards restoring TOR’s operational capacity and financial health, ultimately contributing to Ghana’s energy security and economic stability.
By promising to revitalize TOR, Mahama is positioning himself as a candidate who prioritizes industrial development and sustainable economic growth. His commitment to transparency and private sector collaboration reflects a forward-thinking approach to overcoming the significant challenges faced by the refinery.
As the December elections approach, Mahama’s pledge to breathe new life into the Tema Oil Refinery is likely to resonate with voters who are keen on seeing tangible improvements in the country’s industrial and economic sectors. The successful revitalization of TOR could serve as a pivotal achievement in Ghana’s journey towards greater self-sufficiency in petroleum refining and enhanced economic resilience.
