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General News of Wednesday, 5 May 2010

Source: Reuters

Head of troubled Tema refinery Fired

President John Atta Mills has sacked the head of the Tema Oil Refinery, a government spokesman said on Wednesday, after more than a year in which financial trouble has crippled the 45,000 barrel-per-day plant.

Deputy Information Minister Samuel Okudzeto Ablakwa told Reuters TOR's managing director Kwame Ampofo was replaced on Tuesday by the director of a private motor firm.

"Dr. Ampofo has been replaced by Mr. Ato Ampiah, formerly of Ghana Motors, now Toyota Ghana. The change takes immediate effect," Okudzeto Ablakwa said.

He declined to comment on the reason for the change.

The plant, Ghana's sole refinery, has had regular problems in acquiring oil supplies due to debt, and operations were at a virtual standstill for much of 2009.

The government stepped in to ease the refinery's debt burden last month by paying its main creditor, but officials have said the refinery is still having trouble acquiring letters of credit for crude cargoes.

A union leader said the refinery is now running at about 70 percent of capacity and workers were hopeful the management change would make the plant's operations more reliable.

"We are happy with this change, because Ato Ampiah is somebody we know very well -- we have confidence in him," union leader Albert Pinto told Reuters. "We are ready to work together with him for progress."

Workers at the refinery have regularly protested the refinery's frequent shutdowns and last month called for the sacking of Ghana's energy minister.

Pinto said the refinery had enough stock to continue processing for "the next few weeks."

He added the refinery's main loading gantry, which was gutted by a fire in January, had been reconstructed.

"We have finished work on it and we're hoping to start loading from there tomorrow," he said.

Two workers died in the blaze which also destroyed seven tankers which were waiting to be loaded.