The Ghana National Petroleum Corporation (GNPC) has supplied about 950,000 barrels of Sankofa crude oil to the Tema Oil Refinery (TOR) under a commercial arrangement aimed at strengthening the link between Ghana’s oil production and domestic refining.
The cargo, transported by the Sonangol Cazenga, was received at TOR following an inspection of the vessel by a joint team led by GNPC Chief Executive Officer (CEO), Kwame Ntaw Amoah, and TOR Managing Director, Tond Kombat.
The transaction provides GNPC with a domestic market for part of its crude production while giving TOR access to locally produced feedstock as the refinery works to restore and expand its operations.
Mr Amoah said the arrangement could help Ghana retain more value from its petroleum resources by ensuring that a greater proportion of locally produced crude is processed domestically.
“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.
He said GNPC currently had about eight similar crude cargoes available annually, although some volumes were already committed under existing arrangements.
According to him, increasing domestic crude production could create additional opportunities for TOR to take a larger share of GNPC’s output, provided the refinery maintains the capacity to process the volumes.
“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.
Mr Amoah said a reliable domestic refinery would provide GNPC with a ready market for its crude and create 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.
The development forms part of broader efforts to strengthen linkages across Ghana’s petroleum value chain, particularly between upstream crude production and downstream processing.
For TOR, access to locally produced crude could help reduce its reliance on imported feedstock as it works to increase refining activity.
Mr Kombat said TOR had fully paid for the Sankofa cargo through a Letter of Credit (LoC) accepted by GNPC, meaning the transaction did not create debt exposure for GNPC.
He said the Sankofa crude was well suited to TOR’s refining operations because it was light and sweet, with the potential to produce products including gasoline, gasoil, aviation fuel and liquefied petroleum gas (LPG).
The availability of locally produced crude could therefore support refinery operations while reducing the extent to which TOR depends on imported crude to meet its feedstock requirements.
Beyond crude supply, GNPC and TOR are also discussing the potential supply of natural gas to support refinery operations, Mr Amoah disclosed.
The discussions could establish a broader commercial relationship between Ghana’s upstream and downstream petroleum operations, rather than limiting cooperation to individual crude cargoes.
For GNPC, expanding domestic sales could provide a growing outlet for crude as national production increases. For TOR, sustained access to local feedstock could improve the refinery’s ability to process crude and supply refined petroleum products to the domestic market.
Mr Amoah said GNPC expected the relationship with TOR to deepen as both institutions strengthened their respective operations.
“I believe the collaboration with TOR will continue to grow stronger,” he said.
