Tema Oil Refinery resumes operations

The Tema Oil Refinery (TOR) in Ghana has restarted refining operations after years of being inactive, though it continues to deal with financial and logistical challenges. The refinery's return to service marks a significant step in Ghana's efforts to reduce reliance on imported refined oil.

Refinery considers public funding option

TOR's management is considering an initial public offering (IPO) on the Ghana Stock Exchange to raise capital for its recovery and ongoing operations. This possibility was mentioned by General director Edmond Kombat during a visit by a delegation from the International Monetary Fund (IMF) on October 25.

Refinery restarts with limited capacity

The refinery announced in December 2025 the restart of its distillation unit after maintenance work between August and October. It is currently operating at 28,000 barrels per day, with plans to increase production toward its full capacity of 45,000 barrels per day.

Refinery faces significant debt

TOR inherited a debt of approximately $517 million, with about $120 million owed to the Ghanaian government. Discussions are ongoing to restructure this debt and clarify past financial commitments between the refinery and public entities.

Ghana seeks to reduce oil imports

The search for capital at TOR is part of Ghana's broader goal to reduce its dependence on imported refined products. The government aims for TOR and the Sentuo Oil Refinery to collectively cover about 70% of national demand once expansion projects are completed.

Refinery starts using local crude oil

TOR has begun processing crude oil produced in Ghana after several years of not regularly using this resource. The government allocated a cargo of one million barrels of Jubilee crude to TOR in July 2026, signaling a shift toward domestic oil use.

Need for clearer legal framework

The Institute for Energy Security has urged the government to ensure more predictable implementation of the legal framework for supplying crude oil to domestic refineries. This would allow for better planning and stability in the sector.

Current refinery output and imports

Currently, TOR and Sentuo together cover about 25 to 30% of national consumption, according to the Chamber of Bulk Oil Distributors. Ghana's imports of petroleum products reached nearly 4.9 million tons in 2024, rising to between 6.3 and 6.9 million tons in 2025, before declining by 12.7% year-on-year in the first half of 2026.