The Centre for Environmental Management and Sustainable Energy (CEMSE) has called for a pragmatic, partnership-driven approach to reviving the Tema Oil Refinery (TOR), emphasising that a tolling agreement, rather than an outright sale, offers the most sustainable path to restoring the refinery’s operational and financial viability.
In a statement titled “Direct and Action-Oriented: How a Tolling Deal, Not a Sale, Can Revive Ghana’s Tema Oil Refinery,” the organisation said TOR’s recent performance — including a reported US$21 million in revenue from terminal operations — proves that the refinery can generate substantial income when its assets are strategically managed.
CEMSE credited both the former and current boards for sustaining initiatives that have turned TOR’s underutilised facilities into active revenue sources.
Among these initiatives were a “take-or-pay” storage agreement with Sentuo Oil Refinery, which guarantees TOR an estimated US$2 million monthly income, and new revenue lines from loading rack fees, pipeline right-of-way charges, and dividends from the Ghana Petroleum Mooring System (GPMS).
“These measures repositioned TOR as a diversified petroleum logistics hub,” the statement issued by Benjamin Nsiah, Executive Director ofCEMSE noted, adding that continuity in management strategy has been crucial to maintaining the refinery’s financial lifeline.
CEMSE, however, warned that long-term sustainability requires restarting TOR’s core refining operations — but with a model that protects the state from the risks associated with crude procurement and price volatility.
The centre argued that the tolling model—under which private partners supply crude and assume market risks while TOR processes it for a fixed fee—offers the best solution.
Citing global research by McKinsey & Company, CEMSE said tolling arrangements “provide a stable, low-risk revenue base for refinery owners,” shielding them from market fluctuations.
It described the proposed Netoil Energy Limited transaction, which includes a US$214 million capital investment and a guaranteed US$1.5 per barrel processing fee for at least 12 million barrels annually, as a “lifeline, not a sale.”
“The tolling model transforms TOR’s revenue stream from unpredictable and speculative to guaranteed and sustainable,” said Benjamin Nsiah.
He added that “Under this arrangement, the Government of Ghana retains full ownership of TOR, with no fiscal exposure or sovereign guarantees required.”
According to CEMSE, successful implementation of such partnerships could save Ghana over US$2 billion in foreign exchange during the transaction period, strengthen the cedi, enhance national fuel security, and eliminate TOR’s status as a financial burden on the state.
Mr Nsiah urged the current TOR board to build upon the strategic foresight of previous boards by pursuing smart, de-risked partnerships with credible private sector players.
“The future of TOR lies not in political point-scoring or outright divestment but in pragmatic collaboration that safeguards national interests while leveraging global expertise,” he said.
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