Page 16 - DMEA Week 25 2021

DMEA NEWS IN BRIEF DMEA

assess viable partnerships for TOR, if any. is a misconception. All refining done by TOR For him, the refining capacity has fallen,
Dr. Opoku Prempeh noted that the IMC in the last 6 years using the CDU and Residue utilization rate has been abysmal, staff morale
was key “in order to give the President, the Fluid Catalytic Cracker (RFCC) has resulted is at unprecedented low and that there is very
time to reconstitute the board, which will in losses to the Refinery,” he said in a release little or no hope for the country’s sole oil
come very soon, and probably install a new titled, can TOR work again? refinery.
management, there was the need for an IMC “We have stated in the past that the refinery “For a refinery to be profitable, it has
to be put in place for at least a period of 3 needs special attention by government to to be efficient in terms of it’s operation.
months. We hope they will be able to gather determine the long-term viability of the Government, therefore, may have to concern
as much information as possible about TOR company,” he said, adding that worker’s itself with increasing the refining capacity,
and on TOR all in furtherance of making it a agitation over non-payment of salaries, water increasing the utilization capacity, and
viable functional entity going forward.” supply to the refinery being disconnected reviewing the plant configuration.
The Minister also noted that TOR and its by Ghana Water Company Limited, The bit about funding the refinery to
crippling debts, infrastructural issues and unavailability of crude oil to be refined at the undertake the numerous works outstanding,
equipment have been well noted and that refinery, to mention a few, are some of the government’s best bet is foregoing part of its
since the 4th Republic, every President has recent headlines. stake in the business to private hands. This
thought about value addition to Ghana’s TOR has a 45,000 barrel per stream day is to reduce its level of interference and most
natural resources. (bpsd) capacity Crude Distillation Unit and importantly to provide the needed cash-flow
Paul Twum Barimah said strategic and 14,000 bpsd Residue Fluid Catalytic Cracker for the projects and operations of TOR,” Nana
tactical plans must be drawn or initiated to (RFCC) Unit which converts atmospheric Amoasi VII added.
guide TOR’s operations from the medium air to higher value finished products, but has GHANA WEB
to the long term. The development plan, he being operating below 25,000 bpsd.
said should include appointing a competent, To turn around the fortunes of the Opportunity for new
well trained management expert as chief company, he said, urgent steps must be
executive of the state firm with a target to turn taken to increase refinery’s CDU from entrants in SA refinery
its fortunes around from the short to medium 23,000 bpsd to 45,000 bpsd, solve the RFCC
term and supporting TOR to secure loan to problem, install hydrotreating catalysts sector’
purchase crude oil to refine. and technologies for all crude oil fractions,
GHANA WEB construct a gas pipeline (less than 1KM) to The recent changes in the South African
power the refinery and put measures and refineries industry is creating a fertile ground
TOR MD removed security in place to stop the theft of products. for up-and-coming local challengers with a
focus on sustainable transformation in the
“The government is faced with the
The Managing Director (MD) of Tema Oil daunting task of appointing a new Managing sector, according to Suzako, a Cape-Town
Refinery (TOR), Francis Boateng, has been Director and board of directors to save our based independent fuel solutions provider.
sacked from his post, together with his deputy, premier and only Refinery. The Minister of Eden Gagiano, the head of trading at
Ato Morrison. The duo, who had been at the Energy is appointing an interim management Suzako, which provides oil, gas and energy
helm of the troubled state-owned refinery committee to oversee the day-to-day running products and services, said yesterday that the
since May 2020, were reportedly served with of the refinery. We hope this decision is recent spate of closures of major refineries,
their dismissal letters last Friday June 11, not rushed since the job security of many and the uncertainty over whether it was
2021, by the Ministry of Energy. workers employed at TOR depends on a new worthwhile to get the local refining industry
Commenting on the issue, Executive competent Managing Director,” he said. back on its feet, had fundamentally changed
Director of Institute for Energy Policies and For the Executive Director of the Institute the country’s fuel landscape.
Research (INSTEPR), Kwadwo N. Poku, said for Energy Security (IES), Nana Amoasi “It’s looking more than likely that, in the
the refinery’s current state has been that of VII, the running of the refinery in the past next few years, the country will shift to an
‘grave concern’. five years has been nothing to write home almost total dependence on refined fuel
“There is no quick fix to the myriad of about: “It has been five wasteful years at TOR. imports,” said Gagiano.
problems at TOR. Some people are of the Another moment where no single value In January, South African Petroleum
belief that if GNPC gives our local crude oil was created, but rather waste- occasioned Industry Association (Sapia) executive
to TOR and Ministry of Finance gives money by inefficiency, poor leadership, rising debt, director Avhapfani Tshifularo said in an
to the refinery to pay 6 months of salaries the lack of vision and commitment on the part of interview with S&P Global that South Africa
problems will disappear. Unfortunately, that government.” would grow even more dependent on imports

P16 www. NEWSBASE .com Week 25 24•June•2021