An Energy Expert and Former Chief Executive of the Ghana National Petroleum Corporation (GNPC) has called on the management of Tema Oil Refinery (TOR) to address its operational inefficiency and loss making condition.
That, he said, needs to be done “before it start to make a claim for GNPC to allow it to refine Ghana’s crude and additional state investment from the central government.”
The Energy Expert said the problem of frequent operational disruptions to TORs processing was as a result of mechanical and operational failure of its processing units “which manifests itself in the poor profitability record which has constantly been a drain on the tax payer over the years to support its balance sheet due to years of loss making”
Mr Alex Mould, was reacting to the Managing Director of the Tema Oil Refinery (TOR) Mr. Isaac Osei call for TOR to be allowed to refine portions of Ghana’s crude oil for the local market, instead of selling all on the international market.
Mr Osei bemoaned the situation where GNPC sells all of the country’s oil entitlement on the international market while TOR shops around for crude oil to refine into finished products for local consumption. And in his view, the situation did not give Ghanaians the confidence and excitement they were supposed to have following Ghana’s discovery of oil in commercial quantities.
But, responding to a question on if government should invest more tax payers money in the state enterprise which has been a liability over the years to the state, Mr Mould said in an interview that, for government to decide or take a bold step to investing in TOR to revamp it, the following will be required: “a complete process audit by a recognized international engineering firm; a time bound program to implement the findings of this process audit; and injection of funds to achieve the goals of the audit.”
“Basically TOR needs a performance improvement plan (PIP) after which it needs to demonstrate efficiency”, he noted.
Mr Mould said TOR would need to give a financial guarantee to GNPC (like all traders who purchase crude from GNPC) to ensure that payment was made promptly “so that GNPC does not violate the Petroleum Revenue Management Act which requires full payments for crude lifted be made within 60 days.”