President John Dramani Mahama has confirmed that the Tema Oil Refinery (TOR) will commence processing Ghanaian crude oil in June 2026, signaling a major shift toward local value addition in the country's petroleum sector. The announcement represents a revival of an initiative from his previous administration that was discontinued after he left office.
Speaking at a diaspora town hall meeting in London on Sunday, May 31, 2026, President Mahama revealed that a shipment of crude oil from Ghana's offshore fields would be delivered to TOR for processing next month.
"We are just about to make history again. We did it in my first term, but after we left office, it did not continue. We are about to start refining our crude. In June, we are delivering a parcel of Ghanaian crude from our own oil fields to the Tema Oil Refinery to process," President Mahama stated.
Breaking Import Dependence Cycle
The President emphasized that Ghana's strategy aims to reduce dependence on imported refined petroleum products while maximizing benefits from natural resources. Currently, Ghana exports raw materials including gold, bauxite, and manganese for overseas processing, then imports the finished products at higher costs.
President Mahama highlighted the economic inefficiency of this approach, noting how Ghana creates employment opportunities in other economies while paying premium prices for processed goods derived from its own raw materials.
Energy Sector Financial Recovery
President Mahama disclosed that his administration inherited substantial energy sector challenges, including an estimated debt of US$1.5 billion. A critical World Bank Partial Risk Guarantee worth US$500 million, which covers payments to Italian energy company ENI and its partners for gas supplied from the Sankofa Field, had been completely depleted when the government took office.
Through collaborative efforts between the Ministry of Energy and Ministry of Finance, the guarantee has been fully restored to its original US$500 million value. This restoration has enabled ENI to expand gas deliveries to Ghana for power generation.
Major Investment Commitments
The President announced significant fresh investment commitments from existing partners in Ghana's upstream petroleum sector. Partners in the Jubilee Field have agreed to invest US$2 billion in drilling additional wells to boost oil and gas production capacity.
Additionally, ENI has committed to investing a further US$1.5 billion in the Offshore Cape Three Points (OCTP) project to increase gas production. These investments represent a substantial vote of confidence in Ghana's petroleum sector prospects.
Strategic Value Addition Focus
The resumption of local crude oil processing at TOR forms part of a broader strategy to maximize value from Ghana's natural resources. This approach contrasts with the previous practice of exporting raw crude oil while importing refined petroleum products, which resulted in significant foreign exchange outflows.
The initiative could serve as a model for other African nations seeking to develop local refining capacity and reduce dependence on imported petroleum products. Success at TOR may encourage similar investments in regional energy infrastructure across the continent.