By Joshua Worlasi AMLANU
Tema Oil Refinery (TOR) and the Bulk Oil Storage and Transportation Company (BOST) have signed a memorandum of understanding aimed at strengthening the nation’s petroleum downstream sector upon the resumption of refinery activities at the former.
Sign MoU to deepen technical and commercial ties
Under the agreement, BOST will provide technical support and trading expertise when TOR’s refineries resume production, which have been inactive for several years. The refinery is targeting an October 2025 restart, with management optimistic about running continuously for 18 months once production begins.
TOR Managing Director, Edmond Kombat said the partnership is essential to leveraging the country’s existing oil infrastructure. “BOST has a strong nationwide network, solid balance sheet, and trading experience. These are all resources we can tap into to get the refinery up and running,” he said.
The collaboration is focused on technical cooperation, product offtake, and infrastructure sharing. One of the commercial aspects of the deal includes the use of BOST’s pipelines to move refined petroleum products from TOR to distribution centres across the country, and onward to the Sahelian region.
“Once refining starts, BOST will serve as a key off-taker. We’re reviewing whether the existing pipeline diameters are adequate or need upgrading to handle expected volumes,” Mr. Kombat explained, adding that relying more on pipelines would ease pressure on the current poor road networks.
In addition to the refinery restart, the two institutions have resolved long-standing reconciliation issues relating to debts dating back over two decades. Mr. Kombat said both teams reviewed historical transactions, including storage fees and delayed product deliveries, and agreed to a net settlement. “We needed to clean the slate. This is part of our broader debt restructuring strategy,” he said.
BOST Managing Director Afetsi Awoonor described the collaboration as one that spans the entire petroleum value chain, from refining to storage and distribution. “BOST and TOR are two sides of the same coin. We are combining our strengths—trading and logistics on one side, engineering and refining on the other—to deliver consistent, competitively priced fuel supply to Ghanaians,” Mr. Awoonor said.
The agreement also covers maintenance of TOR’s 14 storage tanks, which BOST is expected to help refurbish. Part of BOST’s strategic fuel reserves may be stored at TOR’s facilities under the new arrangement.
Beyond the immediate restart efforts, TOR has laid out plans for long-term infrastructure expansion.
Mr. Kombat revealed that the refinery aims to boost its processing capacity by an additional 100,000 barrels per stream day and add 20 to 27 new storage tanks on available land adjacent to the plant. The company is also exploring whether to retrofit or replace ageing infrastructure such as the Premium Reformer unit, which produces high-octane gasoline.
The refinery’s management says these investments will be funded through internally generated revenue, making the October relaunch a critical milestone. “If there’s no revenue, it becomes difficult to move forward. We operate as a limited liability company, and the state doesn’t fund us,” Mr. Kombat said.
As part of its corporate social responsibility, TOR is also considering constructing a specialist hospital in the industrial enclave to serve workers and residents exposed to hazardous materials in the area.
Both parties expressed confidence that the agreements will help reposition Ghana as a competitive petroleum hub in West Africa. The TOR-BOST partnership comes at a time when the government is seeking to reduce reliance on imported refined products and build local refining capacity to stabilise fuel prices and secure energy supply.
“We are committed to this path. Once the refinery is restarted and revenue flows improve, we’ll have a stronger case to attract investors and take TOR to the next level,” Mr. Kombat said.
Post Views: 219
