The Minister of State at the Ministry of Energy, Herbert Krapah, has called for a deeper partnership between the Tema Oil Refinery (TOR) and Sentuo Oil Refinery.
Mr Krapah, accompanied by Perry Okudzeto, the Deputy CEO of the National Petroleum Authority (NPA) and directors from the Ministry, said this when he paid a working visit to the two refineries in Tema to abreast himself with their operations.
He indicated that there was a need to get Sentuo to work more closely with TOR, adding that if the two refineries are producing at full capacity, it will benefit the country, as currently there is enough domestic demand for both of them.
“I don’t see why there should be any friction between TOR and Sentuo; there should be a deeper understanding of how the two facilities can be complemented for the benefit of the consumer,” he said.
Touching on TOR’s operations, he said as a national asset, the government was committed to ensuring its revamping to rake in the needed revenue and serve the purpose of its establishment.
“TOR, as we know, is a strategic asset, and it has significant potential in the downstream sector, so it is for many of us a big shame and disappointment we are not able to get TOR to operate at full capacity and operate the purpose for its setup. I don’t think it is late in the day,” he stated.
Mr Krapah noted that even though he believed that finding a strategic partner is the objective on the horizon, while they wait for that, there should be some immediate intervention to prepare TOR.
He said currently, the downstream companies were utilising the laboratory of TOR, which is operating between 30 and 40 per cent of its capacity, adding that “the lab, I believe, is a low-hanging fruit, and as it stands now, the lab is making some money for TOR now, so why don’t we find a way to get some injection in for the turnaround of the lab to increase so that it will work at full capacity to bring some money in immediately?”
He gave the assurance that the government, through the ministry, would work with the management of TOR for the revamping of the refinery, adding that it can produce all petroleum products, including and has the biggest gantry, storage, pipelines, and catalytic cracker, among others.
He acknowledged that the biggest conversation was getting an investor for liquidity support, retooling parts of the plant with new equipment, and bringing in some products.
The Minister of State also stated that to ensure harmony for TOR to operate seamlessly, he would ensure that management, the board, and the various unions work with a common goal and that issues are dealt with as prolonged issues and disagreements only affect the company.
Mr. Perry Okudzeto, the Deputy CEO of NPA, said the regulator was ready to provide the necessary support, guidance, and regulations to make sure that TOR gets back on its feet.
Kofi Tagoe Mocumbi, the Managing Director of TOR, revealed that engagements on getting a strategic investor for the refinery were going well, adding they were about to complete the process and had targeted starting the revamp in three months.
Mr Mocumbi stated that “we are completing the process; at the right time, when all is done, we will share the information. TOR is a work in progress; it gets better over time and requires certain Key Performance Indexes (KPIs) to be met for it to be in a full-function state.”
He added that they were working at revamping and getting their Crude Distillation Unit (CDU) back on stream, “and once we get that, we will begin production and build the work in progress towards our new Residue Fluid Catalytic Cracking (RFCC) and 120,000-tonne boiler and take it from there.”
GNA