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General News of Thursday, 28 August 2014

Source: The Chronicle

Bad decisions, the bane of TOR problems

The $270 million Korean SK Engineering Company built Residual Fluid Catalytic Cracker (RFCC) at the Tema Oil Refinery (TOR) nearly suffered a breakdown when management, in desperation, decided to feed the plant with below standard black oil to process into other petroleum products.

On-going investigations into operations at TOR by The Chronicle revealed that, the use of the product was against experts’ advice. According to information gathered from the refinery, when the residue was brought in from an unknown source, and as the norm, the laboratory reportedly tested, but rejected it on grounds that it did not meet the specification, but orders were issued for its use.

The Managing Director of TOR, Mr. Alfonse Dorku has, however, denied the allegation, describing it as frivolous. According to him, the product (black oil) was not a waste material and challenged The Chronicle to blow the cover of its sources for questioning over the allegation. According to him, “I’ve been appointed to operate a process plant and not to be on the media, so if someone is giving you a story that is incredible, that is fine.”

The Chronicle sources alleged that when the plant was started, the temperature rose from the acceptable 500 degrees Celsius to 700 degrees Celsius, thus causing the system to automatically shutdown. As though that warning was not enough, an authorization allegedly came again from the top for it to be restarted. An order which nearly set the plant ablaze, but the sensors saved the situation.

It is alleged that three tanks in the tank farm are holding the rejected product, which from all indications, is solidifying. Samples of the waste product, we gathered, were sent to laboratories and refineries in Germany, Britain, Singapore and South Africa, and they all advised management against any attempt to refine the product. The refinery, we gathered, made several efforts to sell the product to users of black oil, but all to no avail.

Another area affecting the operations of TOR is the Premium Forming Unit (PFU). Our information is that since the days of Ghana’s first president, Dr. Kwame Nkrumah, when the facility was installed, it has received no revamping. It has been sitting idle for the last fifteen years. Though some retirees were brought to resuscitate it, it has still failed to work, yet the experts are still drawing Ghc5,000 monthly salary.

Insurers who were brought to study the situation recommended that the plant be revamped, but TOR's administration rather went in for a loan to revive it, which has failed to produce results. An executive member of the local union who believes enough is enough, told The Chronicle that the best way to save TOR is to order forensic audit into its operations and correct all the wrong things that had gone on.

He also believes that the time had come for appointing authorities to change the current leadership of the state oil refinery.

Mr. Alfonse Dorku, who dismissed most part of the allegations about the mismanagement going on at the refinery, noted that management was aware of the problems that had bedeviled the PFU, but everything possible was being done to revive the plant.