Management of the Tema Oil Refinery (TOR) has announced that the Ministry of Energy (MoE) has permitted the Oil Company to negotiate a lease agreement to refine crude oil with a private investor, Decimal Capital Ltd.

TOR in a press release stated that the “Decimal Capital Ltd. proposal emerged as the most appropriate to meet the needs of the Refinery among the host of proposals that were presented.”

According to TOR, the deal “is expected to boost the local supply of refined oil products and help stabilize the Ghana Cedi, in the lace of the ongoing international oil market crisis.”

They noted that “A local Transactional Advisor has been contracted by TOR to lead the negotiations in formulating the lease agreement, which is expected to be completed over the next three to four weeks.”

“The investment partner is expected to provide funding for a first phase, which will bring the Crude Distillation Unit (CDU) of TOR back on stream to refine about 45.000 barrels per day in the next few months,” parts of the release stated.

TOR noted that the agreement will “contribute significantly to improving fuel security” in the country.

“Production from TOR can contribute about a third of the current monthly consumption of diesel, and the full requirement of the Aviation Turbine Kerosene (ATK) and Fuel Oil needs of the country.”

They added that “Output from Phase One of this partnership project will be used to revamp the Residual Fluid Catalytic Cracker (RFCC) and other associated units of the Company, to maximize production from the Refinery.”