Audio By Carbonatix
The Institute for Energy Security (IES) is urging government to enact legislation requiring a portion of Ghana's locally produced crude oil to be supplied consistently to the Tema Oil Refinery (TOR), arguing that the current arrangement should not depend on the discretion of the government of the day.
Speaking on JoyNews' News Desk on Monday, July 27, the Senior Researcher at IES, Prosper Smith Boahene, said the recent decision to supply TOR with crude from the Jubilee Field is a positive step but cautioned that it is not enough to transform the refinery's fortunes overnight.
"It took decades for us to get to this position, so we don't expect eight million barrels of crude to automatically change the entire dynamics. If you realise, IES, we are making that call insistently that we need to have a legislative instrument that will ensure the sustainability of what the Jubilee field delivers to TOR should be.
"It shouldn't be that when it is politically convenient, the President or the sector decides to supply crude to TOR. We saw this during President Mahama's first term when crude was delivered to TOR, but it later stopped, and all the gains that had been made were eroded," he explained.
He questioned whether the latest directive would endure beyond the current administration, insisting that a legal framework is needed to ensure continuity.
"That is why IES is calling for a legislative instrument similar to what exists in countries like Nigeria and Indonesia, where they have a domestic market obligation. Under such a system, every crude lifting would reserve a percentage for domestic refining. The percentage could vary from one period to another rather than being fixed, but it would ensure a reliable supply to TOR," he said.
According to Mr Boahene, adopting such a policy would help strengthen Ghana's refining sector and provide greater certainty for the long-term operations of the Tema Oil Refinery.
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