The Ghana National Petroleum Corporation (GNPC) has supplied approximately 950,000 barrels of Sankofa crude oil to the Tema Oil Refinery (TOR), marking a significant development in efforts to strengthen Ghana’s domestic oil refining and petroleum value chain.
The crude oil cargo, transported by the Sonangol Cazenga, was received at the Tema Oil Refinery under a commercial agreement between GNPC and TOR. The delivery was formally marked following an inspection of the vessel by a joint team led by GNPC Chief Executive Officer Kwame Ntow Amoah and TOR Managing Director Edmond Kombat.
The latest crude oil supply is expected to deepen the connection between Ghana’s upstream petroleum production and the country’s downstream refining sector, while creating a more reliable domestic market for locally produced crude.
GNPC Targets Stronger Domestic Crude Oil Market
According to GNPC Chief Executive Kwame Ntow Amoah, the agreement supports efforts to ensure that more of Ghana’s petroleum resources are processed locally.
He said the arrangement is consistent with the government’s vision of building stronger linkages between Ghana’s upstream and downstream petroleum industries, increasing domestic refining and retaining a greater share of the value generated from the country’s oil resources within the local economy.
Mr Amoah said supplying Sankofa crude to TOR goes beyond a commercial transaction between two state-owned institutions.
He explained that processing Ghanaian crude locally could generate additional value across the domestic oil and gas industry, while also supporting the long-term development of the petroleum sector.
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TOR Becomes Potential Domestic Buyer of Ghana Crude
The GNPC CEO further said a reliable and commercially sustainable refinery in Ghana would provide the corporation with a ready domestic market for its crude oil.
According to him, having a dependable local buyer could reduce the need to look exclusively to international markets for buyers of Ghana’s crude.
GNPC currently has an estimated eight to ten crude oil cargoes available each year, although some of these volumes are already committed under existing commercial arrangements.
With Ghana’s oil production expected to increase, GNPC could potentially supply additional crude oil cargoes to TOR in the future.
Ghana Increases Oil Exploration and Production
Mr Amoah said GNPC is continuing its efforts to increase Ghana’s petroleum production through exploration and other upstream activities.
He pointed to the corporation’s ongoing exploration programme, including its pursuit of opportunities in the Voltaian Basin, as part of efforts to expand the country’s crude oil production base.
Increased domestic oil production could provide additional feedstock for Ghana’s refining industry and support the long-term availability of crude oil for local refinery operations.
TOR Confirms Sankofa Crude Cargo Was Fully Paid For
TOR Managing Director Edmond Kombat confirmed that the Sankofa crude cargo was fully paid for through a Letter of Credit accepted by GNPC.
He said the transaction did not create any debt exposure for the refinery, highlighting the commercial nature of the agreement between the two institutions.
The Sankofa crude is also considered suitable for the refinery as TOR works to restore and expand its operating capacity.
Mr Kombat described the crude as light and sweet, with the potential to produce important petroleum products such as gasoline, gasoil, aviation fuel and liquefied petroleum gas (LPG).
The availability of suitable crude feedstock is expected to be important as TOR works towards increasing its refining operations and contributing to Ghana’s domestic fuel supply.
GNPC and TOR Explore Natural Gas Supply Deal
The collaboration between GNPC and TOR is not limited to crude oil supply.
GNPC Chief Executive Kwame Ntow Amoah disclosed that the two institutions are also discussing the possibility of supplying natural gas to the Tema Oil Refinery to support its operations.
A reliable natural gas supply could complement crude oil deliveries and contribute to the refinery’s operational requirements as Ghana seeks to strengthen its domestic petroleum infrastructure.
Domestic Refining to Support Ghana’s Oil and Gas Industry
The Sankofa crude oil agreement highlights the potential benefits of stronger cooperation between Ghana’s upstream and downstream petroleum institutions.
For GNPC, establishing a dependable domestic market for locally produced crude could create a sustainable commercial relationship with TOR while supporting the growth of Ghana’s refining industry.
The corporation says the collaboration could expand as Ghana’s upstream oil production increases.
GNPC remains focused on boosting petroleum production, advancing exploration activities and working with institutions across the oil and gas value chain to ensure Ghana derives greater and sustainable economic benefits from its oil and gas resources.
The supply of approximately 950,000 barrels of Sankofa crude oil to TOR therefore represents an important step in efforts to connect Ghana’s crude oil production with domestic refining, strengthen the petroleum value chain and retain more value from the country’s natural resources within the Ghanaian economy.
Source: newsthemegh.com