The Ghana National Petroleum Corporation (GNPC) has supplied approximately 950,000 barrels of Sankofa crude oil to the Tema Oil Refinery (TOR). This development deepens the link between Ghana's upstream petroleum production and domestic refining. The crude was delivered aboard the Sonangol Cazenga and received at TOR under a commercial arrangement between the two state institutions. A team jointly led by GNPC Chief Executive Kwame Ntow Amoah and TOR Managing Director Edmond Kombat inspected the vessel.
The transaction provides an opportunity for GNPC to create a dependable domestic market for Ghana's crude while supporting efforts to process more of the country's petroleum resources locally. According to Mr. Amoah, the arrangement reflects the President's vision of strengthening linkages between the upstream and downstream petroleum sectors. This vision aims to support domestic refining and help retain more value from Ghana's petroleum resources within the local economy.
The supply of Sankofa crude to TOR on commercial terms represents more than a transaction between two state institutions. It is an opportunity to take a Ghanaian resource, process more of it in Ghana, and create value across the country's petroleum industry. Mr. Amoah emphasized that a dependable national refinery would provide GNPC with a ready domestic market for its crude and lay the foundation for a sustainable commercial relationship between the two institutions.
GNPC currently has approximately eight to ten similar crude cargoes available annually. While some of these volumes are committed under existing arrangements, increased production could create opportunities to supply additional cargoes to TOR over time. The corporation is seeing an uptick in production and continuing with its aggressive exploration efforts, including its onshore pursuit of the Voltaian Basin exploratory programme, to increase production and sustain the supply of crude to the refinery.
The Sankofa crude is considered suitable feedstock for TOR as the refinery rebuilds its operating capacity. Mr. Kombat described it as light and sweet crude, with the potential to yield products including gasoline, gasoil, aviation fuel, and LPG. The crude was fully paid for through a Letter of Credit accepted by GNPC, with no debt exposure arising from the transaction.
Beyond crude supply, GNPC and TOR are exploring additional areas of collaboration. Discussions are underway on supplying natural gas to support TOR's refinery operations. For GNPC, the Sankofa crude arrangement demonstrates the potential of commercially sustainable collaboration between national institutions while creating a platform that can expand alongside Ghana's growing upstream production.
GNPC remains committed to increasing Ghana's petroleum production and working with partners across the value chain to ensure the country derives greater and lasting value from its oil and gas resources. The corporation believes the collaboration with TOR will continue to grow stronger. Key aspects of this collaboration include creating a dependable domestic market for Ghana's crude and supporting efforts to process more of the country's petroleum resources locally.
Key points
- GNPC supplies 950,000 barrels of Sankofa crude oil to TOR under a commercial arrangement.
- The transaction aims to support domestic refining and retain more value from Ghana's petroleum resources within the local economy.
- GNPC and TOR are exploring additional areas of collaboration, including supplying natural gas to support TOR's refinery operations.
