Local crude oil refining: Govt is focused on transforming Ghana into a value addition economy - Energy Minister

The Minister of Energy and Green Transition, Dr John Jinapor has said that the delivery of crude oil to Sentuo Oil refinery for local refining marks historic and significant milestone in Ghana's petroleum industry and in the broader national effort to maximise value from the natural resources.

He sais this is an achievement that goes beyond a commercial transaction.

It represents a deliberate national policy decision to deepen local value addition, strengthen energy security, promote industrialisation and retain a greater share of the benefits derived from Ghana's petroleum resources within our economy, he said.

For many years, Dr Jinapor said, Ghana exported crude oil while importing substantial volumes of refined petroleum products.

While that model served an important purpose during the early years of our petroleum industry, the national ambition must extend beyond the export of raw materials, he said.

He added that true economic transformation requires that we process, refine and add value to our resources locally, creating jobs, building technical capacity, strengthening domestic industries and generating greater economic benefits for our people.

"This milestone therefore affirms the long-standing vision of His Excellency President John Dramani Mahama to deepen local participation and value addition within Ghana's petroleum sector and ensure that our natural resources contribute more directly to industrial development and national prosperity," Dr Jinapor said during the event on delivery event on Monday June 8.

He further said that it is worth recalling that the first successful supply of Ghanaian crude oil to a domestic refinery occurred in 2016 during President Mahama's administration, when approximately one million barrels of Tweneboa Enyenra Ntomme (TEN) oil fields crude oil were supplied through AOT aboard the MT Bodiera for local processing.

That initiative demonstrated the feasibility and strategic importance of linking Ghana's upstream production to domestic refining capacity, he said.

"Today, we are building on that foundation. The delivery of Jubilee crude oil to Sentuo Oil Refinery represents another important step in advancing the same vision of transforming Ghana from a producer and exporter of crude oil into a country that increasingly refines, processes and adds value to its own resources.

"Sentuo Oil Refinery has emerged as one of the most significant private sector investments in Ghana's downstream petroleum industry. The refinery was designed as a 100,000 barrels-per-stream-day facility to be developed in two phases."

He further noted that Phase One was successfully completed in 2024 and is currently operating at a capacity of 40,000 barrels per stream day.

This achievement has already contributed significantly to Ghana's refining capacity, petroleum product availability and energy security, he said.

" I am equally encouraged by Sentuo's plans to commence Phase Two of the project this month. Upon completion, the additional 60,000 barrels per stream day will bring the refinery to its full planned capacity of 100,000 barrels per stream day, positioning Ghana as an important refining and petroleum products hub within West Africa and the wider sub-region.

"The significance of today's event became even more apparent in recent months as Government assessed the potential implications of escalating geopolitical tensions in the Middle East, particularly the conflict involving the United States and Iran, on global energy markets and fuel supply chains.

"During Cabinet deliberations on the matter, His Excellency President Mahama directed urgent measures to strengthen Ghana's energy security and reduce our exposure to external supply disruptions. One of the key interventions identified was the processing of Ghana's own crude oil through domestic refining facilities wherever possible.

"The Ministry of Energy and Green Transition responded swiftly because we firmly believe that domestic refining is not only an energy security imperative but also a critical component of our industrial transformation agenda.

"Following the President's directive, the Ministry initiated engagements with Sentuo Oil Refinery, the Jubilee partners and the Sankofa partners to explore practical pathways for supplying locally produced crude oil to the refinery. We subsequently held extensive discussions with GNPC, Explorco, Tullow Ghana, Kosmos Energy, Vitol Ghana and other key stakeholders to facilitate the necessary commercial and operational arrangements," he said.

He announced that these collaborative efforts have yielded positive results.

Through arrangements concluded between Sentuo Oil Refinery and the crude oil offtakers, the refinery will receive approximately one million barrels of Jubilee crude oil for processing, he said.

"I am particularly excited that the Tema Oil Refinery (TOR) successfully received one million barrels of crude oil on 27th May 2026 and resumed refining operations on 3rd June 2026. This marks a significant milestone in the Government’s efforts to restore Ghana’s premier refinery to sustainable operations and strengthen the country’s energy security. With a consistent crude oil supply line now established, TOR is well-positioned to maintain continuous production to support local fuel requirements and reduce dependence on imported refined petroleum products.

"Furthermore, in line with the vision of His Excellency the President to promote value addition and maximize the benefits of Ghana’s natural resources, TOR is expected to receive a second parcel of Ghanaian crude oil, reinforcing the Government’s commitment to local refining, industrialization, and national economic transformation."

 This achievement, he said, demonstrates the power of collaboration and what can be accomplished when government and industry work together in pursuit of a common national objective.

 Beyond the immediate commercial benefits, he said, this initiative has significant strategic implications for Ghana.

"A stronger domestic refining industry enhances fuel supply reliability, reduces exposure to international supply shocks, improves foreign exchange retention, creates employment opportunities and supports the growth of ancillary industries across the petroleum value chain.

"Local refining also creates opportunities for skills development, technology transfer and increased participation by Ghanaian businesses in the energy sector. These are precisely the kinds of linkages that drive sustainable industrialisation and long-term economic growth."