The Ghana National Petroleum Corporation (GNPC) has supplied approximately 950,000 barrels of Sankofa crude oil to the Tema Oil Refinery (TOR), strengthening the link between Ghana’s upstream petroleum production and domestic refining.
The crude was delivered aboard the Sonangol Cazenga and received by TOR under a commercial arrangement between the two state-owned institutions.
The transaction was marked by an inspection of the vessel by a team jointly led by GNPC Chief Executive Kwame Ntow Amoah and TOR Managing Director Edmond Kombat.
For GNPC, the arrangement provides a domestic market for Ghana’s crude while supporting efforts to increase local refining and retain more value from the country’s petroleum resources within the economy.
Speaking at the ceremony, Amoah said the arrangement was in line with the government’s vision of strengthening linkages between the upstream and downstream petroleum sectors.
He said increased local refining would help Ghana process more of its crude domestically and create additional value across the petroleum value chain.
The supply of Sankofa crude to TOR on commercial terms represents more than a transaction between two state institutions. It is an opportunity to take a Ghanaian resource, process more of it in Ghana, and create value across our own petroleum industry,” he said.
Amoah said a reliable national refinery would provide GNPC with a ready domestic market for its crude and establish the basis for a sustainable commercial relationship between the two institutions.
We don’t have to look far afield for buyers. We know there is a dependable buyer for our oil in-country, and it is a commercial arrangement,” he said.
More crude cargoes available
Amoah disclosed that GNPC currently has approximately eight to 10 similar crude cargoes available annually.
Although some of these volumes are already committed under existing arrangements, he said rising production could create opportunities for additional supplies to TOR.
We are seeing an uptick in production, and we are continuing with our aggressive exploration efforts, including our onshore pursuit of the Voltaian Basin exploratory programme, to increase production and sustain the supply of crude to the refinery,” he said.
The development could provide TOR with greater access to locally produced crude as it works to rebuild and expand its refining operations.
TOR confirms payment
Kombat confirmed that the Sankofa cargo had been fully paid for through a Letter of Credit accepted by GNPC, with no debt exposure arising from the transaction.
He said the Sankofa crude was also suitable as feedstock for TOR as the refinery works to restore its operating capacity.
According to him, the crude is light and sweet, making it suitable for producing a range of petroleum products, including gasoline, gasoil, aviation fuel and liquefied petroleum gas (LPG).
Gas supply under discussion
Beyond crude supply, GNPC and TOR are also exploring other areas of collaboration, including the potential supply of natural gas to support refinery operations.
Amoah said discussions were ongoing on supplying gas to TOR as part of efforts to strengthen cooperation between the two institutions.
The Sankofa crude supply represents an effort to build a commercially sustainable relationship between Ghana’s upstream petroleum producer and its domestic refinery.
GNPC said it remained committed to increasing Ghana’s petroleum production and working with players across the petroleum value chain to ensure the country derives greater and lasting value from its oil and gas resources.
We believe the collaboration with TOR will continue to grow stronger,” Amoah said.
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