Former Power Minister and former Chairman of Parliament’s Mines and Energy Committee, Dr. Kwabena Donkor, is of the firm belief that the embattled Tema Oil Refinery (TOR) possesses enough strategic infrastructure to remain profitable or at least break even even when it is not actively refining crude oil.
His comments come after the recent announcement that TOR had recorded a profit of GH¢1.24 billion in 2025. This marks the first profit of the refinery in a decade.
Although Dr. Donkor says he is not privy to the details of the profit, the development is encouraging. However, he was quick to point out that the purported profit should not overshadow the urgent need to modernise the refinery’s ageing operational facilities.
Speaking in an interview with The High Street Journal, Dr. Donkor explained that TOR’s vast storage infrastructure gives the state-owned refinery a unique commercial advantage that can generate significant revenue independent of refining activities.
According to him, the refinery’s extensive tank farm and storage facilities position it as a critical logistics and petroleum storage hub within Ghana’s downstream petroleum sector. With proper management and optimal utilisation of these assets, TOR can earn substantial income through storage and related commercial services.
“TOR has the infrastructure to make profits without even blending or without even refining, because TOR is the biggest storage depot. Yes, especially in Tema. So if properly managed, that alone is enough for TOR to break even,” he remarked.
Dr. Donkor indicated that the strategic value of TOR’s storage infrastructure allows the company to serve petroleum marketers, traders and other industry players who require storage capacity for imported petroleum products.
While welcoming the improved financial performance, Dr. Donkor cautioned that profitability alone should not distract management and policymakers from addressing TOR’s long-standing operational challenges.
He noted that several critical components of the refinery, including its Crude Distillation Unit (CDU) and utility systems, have become severely outdated after decades of operation.
For this reason, he said any plans by management to retool and modernise the refinery should be pursued with urgency.
He added, “But the important thing is that no matter the profits they make or may make, there is the urgent need to retool TOR. The crude distillation Unit, the utilities, some of them are older than a number of the workers there.”
“If they are actually retooling, I would say kudos. If they are planning to do that, I would say they should expedite action,” he said.
The former minister also believes that a fully operational TOR would deliver far-reaching economic benefits for Ghana.
He pointed out that a revitalised TOR operating alongside the Sentuo Oil Refinery could significantly reduce the country’s dependence on imported petroleum products. Together, the two refineries could process between 80,000 and 85,000 barrels of crude oil per day, potentially meeting between 70 and 90 percent of Ghana’s refined petroleum product requirements depending on product demand patterns.
Such a development, he noted, would not only reduce the country’s import bill but also create jobs, stimulate industrial activity and generate multiplier effects across the broader economy through the utilisation of refinery by-products.
Dr. Donkor concluded that while TOR’s storage assets provide a strong foundation for financial sustainability, the refinery’s long-term competitiveness and contribution to national development will ultimately depend on successful retooling and operational efficiency.
