The Minister of State at the Ministry of Energy, Herbert Krapa, has emphasised the need for a deeper partnership between the Tema Oil Refinery (TOR) and Sentuo Oil Refinery.
During a working visit to the two refineries in Tema, Mr. Krapa, accompanied by Mr. Perry Okudzeto, the Deputy Chief Executive Officer of the National Petroleum Authority (NPA), and directors from the Ministry, familiarised himself with their operations.
He highlighted the potential benefits for the country if both refineries operate at full capacity, citing sufficient domestic demand.
“I don’t see why there should be any friction between TOR and Sentuo; there should be a deeper understanding on how the two facilities can be complemented for the benefit of the consumer,” he said.
Discussing TOR’s operations, Mr. Krapa reiterated the government’s commitment to revamping the national asset to generate the needed revenue and fulfill its intended purpose.
“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 added.
While acknowledging the importance of finding a strategic partner for TOR, he stressed the need for immediate interventions to prepare the refinery in the interim.
Mr. Krapa noted that downstream companies are currently utilizing TOR’s laboratory, which operates at 30 to 40 percent of its capacity. He identified the lab as a “low-hanging fruit” that could quickly generate revenue for TOR if its capacity is maximized.
He proposed an injection of resources to fully operationalize the lab, bringing in immediate financial benefits.
Assuring continued government support, Mr. Krapa pledged to collaborate with TOR’s management for the refinery’s revamping.
He highlighted TOR’s capability to produce all petroleum products and its significant infrastructure, including the biggest gantry, storage facilities, pipelines, and a catalytic cracker.
He also acknowledged the need for an investor to provide liquidity support, retool parts of the plant with new equipment, and supply products.
To ensure TOR operates seamlessly, Mr. Krapa committed to fostering cooperation among management, the board, and various unions, addressing issues promptly to prevent disruptions to the company’s operations.