Ghanay’s quest for energy security and industrial transformation received a major boost on Monday when Sentuo Oil Refinery received its first shipment of one million barrels of crude oil from the Jubilee Field.
The first consignment is expected to contribute significantly to domestic fuel production, the creation of jobs, stimulation of economic growth and improvement of the country’s energy security.
Sentuo Oil Refinery, a private refinery belonging to the Chinese conglomerate, Sentuo Group, began operations in 2024 with an initial processing capacity of approximately 40,000 barrels per day, expandable to about 100,000 barrels per day in future phases.
The $2-billion refinery, located at the Tema Industrial Area, is expected to augment the country’s oil refinery efforts presently being spearheaded by the Tema oil refinery.
Speaking at the handing-over ceremony in Tema, the Minister of Energy and Green Transition, Dr John Jinapor, said the country’s decades-long model of exporting crude while importing refined products “was unsustainable.”
He said for about eight years, the nation’s own refinery was largely down, forcing reliance on imports.
Dr Jinapor tied the milestone to former President Kwame Nkrumah’s long-standing vision for local participation and value addition. The energy minister recalled that in 2016, one million barrels of oil from the Tweneboa, Enyera and Ntomme (TEN) fields were delivered to Tema Oil Refinery for processing before the NDC administration left office.
He stated that the move for more refineries was accelerated by the recent US-Iran conflict, which compelled cabinet to endorse remedial fuel price shocks.
“Government had subsidised diesel by GH¢2 per litre for one month, and is still subsidising by GH¢1 per litre. President John Dramani Mahama directed that the Ministry of Energy should explore the possibility of refining our own crude oil here in Ghana rather than exporting the crude oil in raw form,” Dr Jinapor explained.
As a result, he said his ministry, working with the National Petroleum Authority (NPA), the Ghana National Petroleum Corporation (GNPC), Cenpower, GNPC Exploration and Production Limited Company (Explorco), Tullow, Kosmos, Eni, Vitol and others, developed a roadmap for the local oil refinery.
Dr Jinapor stressed that the strategic benefits included stronger fuel supply security, reduced exposure to global shocks, foreign exchange (forex) retention, jobs and growth of ancillary industries.
“As you refine oil, you get by-products and other products with benefits to the entire value chain,” he said, and assured investors that the government remained committed to business-friendly policies that supported local value addition, and pledged full support to bring Phase two of the factory on stream.
The energy minister also appealed to the Jubilee partners for more deliveries, saying “We are waiting for round two to four, and all the rounds forever. It shouldn’t be a one-day activity.”
Dr Jinapor added that the government would support not just Sentuo Oil Refinery, but every oil refinery in the country to add value to the country’s own resources.
New era
The Executive Chairman of Sentuo Group, Ningquan Xu, described the event as the beginning of a new era in which Ghana could process and refine its own crude oil locally, creating jobs, strengthening energy security and generating greater value from its natural resources.
He said for many years, the country had exported crude oil while importing refined petroleum products, a model, he said, limited the country’s industrial growth.
The commencement of local refining, he stated, marked a significant step toward economic self-reliance and industrial transformation.
Mr Xu said the refinery was already creating employment opportunities across engineering, logistics, transportation and related industries, while supporting the government’s vision of making Ghana a leading petroleum processing and trading hub in West Africa.
Support
The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, commended the company, saying it aligned with the government’s vision of promoting value addition and industrial growth.
She stressed the importance of processing Ghana’s natural resources locally to maximise the economic benefits
“For more than 15 years, we watched our crude leave our shores and return as finished products at prices we could not control. Today, that cycle begins to change,” Mrs Ofosu Adjare said.
The trade minister said the refinery would create value from the country’s natural resources, generate jobs, support local industries and contribute to economic growth through the production of diesel, liquefied petroleum gas (LPG) and asphalt.
Tullow
A statement issued by the lead operator of the Jubilee Field, Tollow Oil, said under the commercial arrangement, crude oil from the Jubilee Field, operated by Tullow on behalf of the Jubilee Partners, had been made available to Sentuo Oil Refinery for processing into refined petroleum products for the Ghanaian market.
It said the deal was made possible through Tullow’s longstanding commercial relationship with global commodities company, Glencore, which was the exclusive marketer of Tullow’s crude oil entitlement.
“Working closely with the Ministry of Energy and Green Transition and Sentuo, crude oil liftings were made available, through the Suezmax Mare Siculum vessel, to Sentuo’s terminal to support operations, strengthen refining capacity and enhance security of supply,” added.
Tullow said the move supported Ghana’s efforts to strengthen local refining capacity, enhanced energy security and advanced industrial development.
The Managing Director of Tullow, Jean-Medard Madama said the initiative reflected the partners’ commitment to supporting the development of Ghana’s energy sector beyond upstream production.
“Facilitating access to locally produced crude for domestic refining helps strengthen the links across the petroleum value chain while contributing to energy security, industrial growth and long-term value creation for the country,” Mr Madama said.
Source: www.kumasimail.com
