INSTEPR Prescribes Solutions For TOR

Kwadwo N. Poku

EXECUTIVE DIRECTOR of the Institute for Energy Policies and Research (INSTEPR), Kwadwo N. Poku, has called on government to provide solutions to the numerous challenges that have bedevilled the Tema Oil Refinery (TOR) in recent times.

Mr. Poku said if government would fix the crude distillation unit (CDU) at the Tema Oil Refinery (TOR) from the 23,000 barrel per stream day (bpsd) to 45,000 bpsd, solve the residue fluid catalytic cracker (RFCC) problem, as well as install hydrotreating catalysts and technologies for all crude oil fractions, these will enable the refinery meet its 50 parts per million (ppm) or lower specification.

He also advised government to construct a gas pipeline to power the refinery to stop the refinery from using expensive crude oil for power, adding that measures and security also have to be put in place to stop the theft of products at the refinery.

The INSTEPR Executive Director said his outfit has been monitoring current happenings at the refinery with grave concern.

“We have stated in the past that the refinery needs special attention by government to determine the long-term viability of the company.

“Workers agitation over nonpayment of salaries, water supply to the refinery being disconnected by Ghana Water Company Limited, unavailability of crude oil to be refined at the refinery, to mention a few are the recent headlines in the country.

“There is no quick fix to the myriads of problems at TOR. Some people are of the belief that if GNPC gives our locally-produced crude oil to TOR and the Ministry of Finance gives money to the refinery to pay the six months salary arrears of workers, the problems will disappear. Unfortunately, that is a misconception. All refining done by TOR in the last six years using the CDU and RFCC has resulted in losses to the refinery.”

He made these known in a release issued following the exit of the Managing Director and the Deputy Managing Director, Messrs Francis Boateng and Ato Morrison from office this week after managing TOR for fourteen (14) months.

“In recent weeks our beloved Tema Oil Refinery has been in the news for all the wrong reasons. The refinery is a 45,000 barrel per stream day (bpsd) capacity Crude Distillation Unit and 14,000 bpsd Residue Fluid Catalytic Cracker (RFCC) unit which converts atmospheric air to higher value finished products,” he disclosed.

Mr. Poku also recommended that the tolling business model, which was started by Mr. Isaac Osei with Woodfields had sustained the refinery with cash flow “until the contract was frustrated and ultimately not renewed by the outgoing Managing Director, without any substitute arrangement.”

“In February 2020, INSTEPR interviewed the then Managing Director, Asante Berko, who outlined his vision for the refinery and strongly believed that a sound financial modelling and restructuring the business of TOR will turn the fortunes of the refinery. The institute shared in his vision to revamp TOR and judging by what he had done the few months he was at post, we felt it was unfortunate he resigned in April 2020,” he additionally emphasised.

He said as the government was faced with the daunting task of appointing a new Managing Director and a Board of Directors to save Ghana’s premier and only refinery, and the Minister of Energy has appointed an interim management committee to oversee the day to day running of the refinery, adding “We hope this decision is not rushed since the job security of many workers employed at TOR depends on a new competent Managing Director.”

A Business Desk Report

 

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