The Institute for Energy Security (IES) has warned that relying on ad hoc crude oil allocations could undermine the gains made from the return of the Tema Oil Refinery (TOR) to operations.
In a policy research paper sighted by Metro TV, the institute argued that TOR’s turnaround maintenance has restored the refinery’s physical capacity to process crude, but sustained production will depend on whether it receives adequate and predictable feedstock.
According to the IES, Ghana has already begun making negotiated crude allocations to TOR, including a reported one-million-barrel allocation of Jubilee crude. However, it says such arrangements should not replace a formal and recurring Domestic Market Obligation (DMO) system.
The institute said Ghana’s existing petroleum laws provide the framework for a more predictable supply arrangement.
Section 71 of the Petroleum (Exploration and Production) Act, 2016 (Act 919) allows the Minister responsible for the sector to require petroleum contractors to sell a portion of their crude entitlement to meet domestic supply needs.
Regulation 32 of L.I. 2359, as amended by L.I. 2390, sets out how the obligation should be calculated, including annual and monthly requirements, delivery arrangements and pricing.
IES believes the return of TOR makes it necessary to activate these provisions consistently rather than depend on individual allocations.
The refinery completed turnaround maintenance on its Crude Distillation Unit in October 2025 and resumed refining operations in December. It is currently reported to be operating at about 28,000 barrels per stream day against a nameplate capacity of 45,000 barrels, with further expansion planned.
The institute said a refinery that has been restored but cannot secure sufficient crude could still struggle to deliver the expected benefits to Ghana’s downstream petroleum sector.
It cited Nigeria’s experience as a warning, noting that the Dangote refinery has at times received fewer crude cargoes than required for efficient operations, forcing it to source additional crude from international markets in US dollars.
IES said Ghana should therefore ensure that any DMO allocation to TOR is tied to the refinery’s actual throughput requirements and adjusted as its capacity increases.
It also cautioned against using a domestic crude obligation merely as a symbolic policy measure, arguing that insufficient volumes would fail to deliver the intended benefits and could expose domestic refiners to the same foreign-currency pressures seen in Nigeria.
The institute is recommending that the government issue the 90-day notices required under Regulation 32 and establish a recurring, calendar-year system for domestic crude supply.
It further wants annual domestic supply requirements to be published and broken down monthly, giving producers and refiners greater certainty in planning their operations.
IES says the shift from discretionary allocations to predictable crude supply would help protect the gains made from TOR’s revival and provide a more reliable foundation for Ghana’s domestic refining ambitions.
