Ghana is set to achieve a significant milestone in its energy sector as the Tema Oil Refinery (TOR) prepares to process crude oil sourced directly from the country’s offshore oil fields for the first time in years.

President John Dramani Mahama has announced that a shipment of Ghanaian crude oil will be delivered to the refinery in June 2026 for local processing, a move aimed at strengthening domestic refining capacity and reducing reliance on imported petroleum products.

The development marks a major step in the government’s broader strategy to maximize the economic benefits of Ghana’s natural resources through local value addition rather than exporting raw materials for processing abroad.

Speaking during a diaspora engagement in London, President Mahama described the initiative as a return to a policy first pursued during his previous administration.

According to him, Ghana has for years exported raw materials and imported finished products at higher costs, limiting the country’s ability to create jobs and retain more value within the local economy.

Ghanaian Crude to Be Refined Locally

The planned delivery will involve crude oil produced from Ghana’s offshore fields being processed at the Tema Oil Refinery instead of being exported in its raw state.

Industry experts view the move as an important step toward enhancing energy security, reducing import dependency, and supporting the growth of Ghana’s downstream petroleum industry.

The initiative is also expected to create additional opportunities for local industry participation while helping the country derive greater value from its oil resources.

TOR Reaffirms Capacity to Process Local Crude

The announcement follows earlier assurances from TOR that it possesses both the technical expertise and operational capacity required to refine crude oil from Ghana’s oil fields.

Officials at the refinery have previously stated that TOR successfully processed crude from the TEN Field during a similar arrangement in 2016, demonstrating that the facility is capable of handling locally produced crude.

According to TOR, Ghana’s crude is classified as light and sweet crude, making it suitable for the refinery’s existing processing infrastructure.

The refinery is currently operating at approximately 28,000 barrels per stream day but is implementing upgrades that are expected to increase capacity to 45,000 barrels per stream day in the near term. Longer term plans could eventually raise capacity to about 160,000 barrels per day through the construction of an additional refinery unit.

Fresh Investments Expected in Oil and Gas Sector

Alongside the refinery announcement, President Mahama revealed that major investments are being committed to Ghana’s upstream petroleum sector.

According to the President, partners in the Jubilee Field have agreed to invest approximately $2 billion in new drilling activities aimed at boosting oil and gas production. Additionally, Italian energy company ENI is expected to invest a further $1.5 billion in the Offshore Cape Three Points project to increase production levels.

The government believes these investments will support long term energy security and provide the feedstock needed to sustain local refining activities.

A New Chapter for Ghana’s Energy Sector

The planned refining of Ghanaian crude at TOR represents more than a technical achievement. It symbolizes a renewed effort to strengthen local industry, create jobs, and reduce the country’s dependence on imported refined petroleum products.

The initiative also comes as TOR continues its recovery following years of operational challenges. The refinery resumed crude oil processing in late 2025 and has since been working toward restoring and expanding its operations.

Energy analysts say successful local refining could help improve foreign exchange retention, reduce fuel import costs, and position Ghana as a stronger player within the West African petroleum market.

With the first shipment expected this month, attention is now focused on what could become a defining moment for Ghana’s refining industry and the country’s broader industrialization agenda.