The Ghana National Petroleum Corporation (GNPC) says Tema Oil Refinery (TOR) in its currents state is not profitable.<\/p>\n
It said unless the Tema Oil Refinery (TOR) is put into proper shape, it cannot be allowed to refine crude from the jubilee oil fields.<\/p>\n
The GNPC also discounted reports that it is refusing to supply TOR with crude oil.<\/p>\n
TOR, over the past few years has not been operating to its full capacity due to its huge indebtedness and other operational inefficiencies.<\/p>\n
Workers of TOR have been asking the government to allow Ghana\u2019s crude oil to be refined by them stating that refining the nation’s crude abroad is not cost effective.<\/p>\n
The Africa Centre for Energy Policy (ACEP) has cautioned that TOR should only be allowed to refine crude oil if it will be cheaper.<\/p>\n
Speaking on the Citi Breakfast Show<\/strong>, the Chief Executive Officer (CEO) of the GNPC,<\/em> Alex Mould said the Corporation is not insisting on Ghana\u2019s crude oil being refined at TOR because some fundamental problems at the refinery must be addressed.<\/p>\n He said the GNPC must be able to get value for money because \u201cif you send it [crude oil] there, you have to be sure that the yields of the petroleum products you get; you should be able to sell it at the current prices at the pump so that you can get your money back.\u201d<\/p>\n Mr. Mould acknowledged that TOR has faced a lot of neglect over the years which led to the shutdown.<\/p>\n The GNPC has between 18 to 20% of the total crude from the jubilee oil fields and it is mandated to sell the crude oil and pay the money within 60 days.<\/p>\n According to the GNPC CEO, if the crude oil is supplied to TOR, the refinery is expected to pay for the supplies and support it with financial guarantees.<\/p>\n He admitted that TOR is capable of refining crude oil but \u201ca complete process audit of the refinery has to be done\u2026to bring it into proper shape where it should be able to be profitable.\u201d<\/p>\n Mr. Mould questioned how much the state would have to spend on TOR to enable it operate at full capacity.<\/p>\n \u201cHow much is it going to cost us to fix Tema Oil Refinery? Where are we going to get the money? Are we going to sue tax payer\u2019s money, from the budget or are you going to leverage on the Tema Oil Refinery\u2019s balance sheet?\u201d he asked.<\/p>\n In his opinion, no bank in Ghana will be willing to leverage on the balance sheet of TOR because \u201cthere is a balance sheet problem.\u201d<\/p>\n He further inquired whether the government will bring in a strategic investor to invest in TOR although such investors would demand total control over the refinery.<\/p>\n The GNPC boss was convinced that TOR\u2019s shareholder [government] would have to make a choice.<\/p>\n \u201cEvery crude oil we will take to Tema Oil Refinery, there will be a loss and this loss is paid by the tax payer\u201d he insisted, adding that, \u201crefining at a loss is not a business proposition. It may be a political proposition but it is not a business proposition.\u201d<\/p>\n <\/p>\n By: Efua Idan Osam\/citifmonline.com\/Ghana
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