Tema Oil Refinery
Encyclopedia
The Tema Oil Refinery is the only crude oil refinery in Ghana.

History

The refinery is in Tema
Tema
Tema is a city on the Atlantic coast of Ghana, lying east of the Ghanaian capital city, Accra, in the region of Greater Accra. As of 2005, Tema had a population of 209,000. The Greenwich Meridian passes directly through the city...

, the most industralized city in Ghana. It is 24 kilometres (14.9 mi) from Accra
Accra
Accra is the capital and largest city of Ghana, with an urban population of 1,658,937 according to the 2000 census. Accra is also the capital of the Greater Accra Region and of the Accra Metropolitan District, with which it is coterminous...

, the capital of Ghana. The refinery was first named the Ghanaian Italian Petroleum Company (GHAIP). It was licensed as a private limited liability company in 1960 as a fully owned Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

 company – ANIC Societa per Azioni and AGIP Societa per Azioni of Italy were its major shareholders. In 1977, the Government of Ghana became the sole shareholder. The name of the refinery was changed to the Tema Oil Refinery in 1991. TOR is authorized by law to operate both as a refiner of crude oil and seller of petroleum products.

Capacity

Annually, 1800000 tonne of refined petroleum products are used in the Ghanaian economy. The refinery's production reduces the cost of petroleum products imported into the country.

Ghana started commercial production of crude oil in December, 2010. The country's Jubilee oil field
Jubilee oil field
The Jubilee oil field is an oil field located in the Atlantic Ocean.The Jubilee field is located 60km offshore between the Deepwater Tano and West Cape Three Points blocks in Ghana...

 produces the high grade 'Sweet Light' oil. The installation processes 9548 tonne of crude oil daily. However, TOR was built to process lower grade crudes and cannot refine oil from the new local fields unless significant investment was made. An engineer at the oil field said the costs of retrofitting required to cope with the higher grade oil (approximately $1 billion) was prohibitive, and that it was unlikely that the investment would ever be made. The refinery has an output capacity of about 6,138 metric tonnes per day.

TOR underwent the first phase of a major rehabilitation in 1989. The second phase began in April 1990 at an estimated cost of US$36 million. The aim of the rehabilitation is to improve distribution of liquefied petroleum gas, and increase its supply from 28000 to 34000 bbl (4,451.6 to 5,405.6 m3) per day. Construction on the new Tema-Akosombo
Akosombo
Akosombo is a town in the east of Ghana in the Eastern Region. It is the site of the Akosombo Dam. Close to Akosombo is the Adomi Bridge at Atimpoku.- External links :*...

 oil products pipeline, designed carry refined products from Tema to Akosombo Port, began in January 1992. From there, oil is to be transported across Lake Volta
Lake Volta
Lake Volta is the largest reservoir by surface area in the world, and the fourth largest one by water volume. It is located completely within the country of Ghana, and it has a surface area of about 8,502 km² . Lake Volta lies along the Greenwich Meridian, and just six degrees of latitude...

 to northern regions. In 2002, the Minister of Energy
Ministry of Energy (Ghana)
The Ministry of Energy is the government ministry in charge of extending and ensuring a continuous supply of energy services to every division of the Ghanaian economy in an energy sufficient, environmentally friendly manner.-Functions of the Ministry:...

 announced that the Government of Ghana had negotiated with Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

 Corporation of South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

provide 230 million dollars for the funding of expansion works at the refinery. The major work was the installation of the Residue Fluid Catalytic Cracker (RFCC). There was an installation of two new steam boilers with a total capacity of 120 tonne per day. These replaced three old boilers of total capacity of 60 tonne per day which had been installed in 1963.

TOR debts

The Government of Ghana in 2010 paid all the debt owed to Ghana Commercial Bank. The debt of 1 billion cedis had accrued due to government subsidy on petroleum products.
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