Tema Oil Refinery (TOR) has said it possesses technical capability to refine domestic crude oil, disputing suggestions that the country’s only refinery cannot process output from the nation’s offshore oil fields.

In a statement signed by it’s Corporate Affairs Executive, Godwin Mahama, the refinery said technical studies and crude assays have confirmed that Ghana’s light sweet crude, particularly from the Jubilee and TEN fields, is compatible with the refinery’s existing configuration.

“Comprehensive technical assessments and crude assays have demonstrated that Ghana’s light sweet crude is compatible with the refinery’s configuration,” Mahama said, adding that the facility can process the crude efficiently to produce refined petroleum products required by the domestic market.

According to TOR, the refinery is capable of producing gasoline, diesel, jet fuel, kerosene and other petroleum derivatives from Ghanaian crude. The statement noted that the refinery had previously processed crude from the TEN field in 2016, providing operational precedent for processing locally produced oil.

The refinery added that the API gravity of Jubilee and TEN crudes is well suited to TOR’s refining system, supporting its position that Ghanaian crude can be processed domestically.

The response follows recent public debate over whether Ghana’s refinery is technically configured to refine crude produced from the country’s offshore oil fields. Ghana exports most of its crude production from the Jubilee, TEN and Sankofa fields while importing refined petroleum products to meet domestic fuel demand.

The refinery resumed crude oil processing in late 2025 after several years of inactivity caused by financial constraints, accumulated debt and aging infrastructure. Commissioned in 1963 with a nameplate capacity of about 45,000 barrels per day, TOR is currently operating below that level as it gradually ramps up output following maintenance and operational stabilisation.

Officials say the refinery aims to restore full capacity and pursue further upgrades that can expand processing capability and strengthen its role in Ghana’s downstream petroleum sector.

TOR added that refining Ghanaian crude locally will provide several strategic and economic benefits for the country. These include reducing reliance on imported petroleum products, strengthening national energy security and conserving foreign exchange that would otherwise be used for fuel imports.

The refinery also argued that domestic refining will enhance value addition within Ghana’s petroleum sector and stimulate broader industrial activity.

“Increased local refining activity will stimulate employment, strengthen the downstream petroleum industry and support national industrialisation efforts,” the statement read in part.

Ghana’s downstream petroleum sector has long depended heavily on imports of refined products – a system that exposes the country to fluctuations in global prices and foreign exchange pressures. Advocates of domestic refining argue that processing crude locally can help moderate some of these vulnerabilities while expanding industrial capacity.

TOR said plans are advanced for the refinery to pivot toward refining Ghanaian crude in the future as part of efforts to strengthen fuel supply stability.

“Plans are far advanced by government to let TOR pivot to refining Ghanaian crude in the not too distant future, thus ensuring fuel stability and security,” the statement said.

The refinery added that it remains committed to working closely with government, upstream producers, regulators and industry stakeholders to promote the utilisation of Ghana’s crude resources for domestic refining.

According to the statement, collaboration across the petroleum value chain will be essential in expanding local refining activity and ensuring efficient use of Ghana’s crude resources.

TOR also said it is continuing to pursue operational improvements and strategic partnerships aimed at restoring the refinery to full operational capacity. The facility has faced periods of shutdown and operational challenges in recent years, including financial constraints and aging infrastructure.

Despite these challenges, the refinery said it remains committed to playing a central role in Ghana’s energy sector.

“Tema Oil Refinery remains committed to efficiency and national service as it works to contribute meaningfully in Ghana’s petroleum value chain,” Mahama said.

The refinery added that strengthening domestic refining capacity will position TOR as a key driver of Ghana’s long-term energy security and economic development.