{"id":100194,"date":"2025-10-25T11:59:36","date_gmt":"2025-10-25T11:59:36","guid":{"rendered":"https:\/\/sotnews.agency\/?p=100194"},"modified":"2025-10-25T11:59:36","modified_gmt":"2025-10-25T11:59:36","slug":"reviving-tema-oil-refinery-cemse-backs-tolling-model-as-best-path","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=100194","title":{"rendered":"Reviving Tema Oil Refinery: CEMSE backs tolling model as best path"},"content":{"rendered":"
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The Centre for Environmental Management and Sustainable Energy (CEMSE) has called for a pragmatic, partnership-driven approach to reviving the Tema Oil Refinery (TOR), emphasising that a tolling agreement, rather than an outright sale, offers the most sustainable path to restoring the refinery\u2019s operational and financial viability.<\/p>\n

In a statement titled \u201c<\/em>Direct and Action-Oriented: How a Tolling Deal, Not a Sale, Can Revive Ghana\u2019s Tema Oil Refinery,\u201d<\/em> the organisation said TOR\u2019s recent performance \u2014 including a reported US$21 million in revenue from terminal operations \u2014 proves that the refinery can generate substantial income when its assets are strategically managed.<\/p>\n

CEMSE credited both the former and current boards for sustaining initiatives that have turned TOR\u2019s underutilised facilities into active revenue sources.<\/p>\n

Among these initiatives were a \u201ctake-or-pay\u201d storage agreement with Sentuo Oil Refinery, which guarantees TOR an estimated US$2 million monthly income, and new revenue lines from loading rack fees, pipeline right-of-way charges, and dividends from the Ghana Petroleum Mooring System (GPMS).<\/p>\n

\u201cThese measures repositioned TOR as a diversified petroleum logistics hub,\u201d the statement issued by Benjamin Nsiah, Executive Director ofCEMSE noted, adding that continuity in management strategy has been crucial to maintaining the refinery\u2019s financial lifeline.<\/strong><\/p>\n

CEMSE, however, warned that long-term sustainability requires restarting TOR\u2019s core refining operations \u2014 but with a model that protects the state from the risks associated with crude procurement and price volatility.<\/p>\n

The centre argued that the tolling model\u2014under which private partners supply crude and assume market risks while TOR processes it for a fixed fee\u2014offers the best solution.<\/p>\n

Citing global research by McKinsey & Company, CEMSE said tolling arrangements \u201cprovide a stable, low-risk revenue base for refinery owners,\u201d shielding them from market fluctuations.<\/p>\n

It described the proposed Netoil Energy Limited transaction, which includes a US$214 million capital investment and a guaranteed US$1.5 per barrel processing fee for at least 12 million barrels annually, as a \u201clifeline, not a sale.\u201d<\/p>\n

\u201cThe tolling model transforms TOR\u2019s revenue stream from unpredictable and speculative to guaranteed and sustainable,\u201d said Benjamin Nsiah.<\/p>\n

He added that \u201cUnder this arrangement, the Government of Ghana retains full ownership of TOR, with no fiscal exposure or sovereign guarantees required.\u201d<\/p>\n

According to CEMSE, successful implementation of such partnerships could save Ghana over US$2 billion in foreign exchange during the transaction period, strengthen the cedi, enhance national fuel security, and eliminate TOR\u2019s status as a financial burden on the state.<\/p>\n

Mr Nsiah urged the current TOR board to build upon the strategic foresight of previous boards by pursuing smart, de-risked partnerships with credible private sector players.<\/p>\n

\u201cThe future of TOR lies not in political point-scoring or outright divestment but in pragmatic collaboration that safeguards national interests while leveraging global expertise,\u201d he said.<\/p>\n<\/div>\n

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\"RevivingThe Centre for Environmental Management and Sustainable Energy (CEMSE) has called for a pragmatic, partnership-driven approach to reviving the Tema Oil Refinery (TOR), emphasising that a tolling agreement, rather than an outright sale, offers the most sustainable path to restoring the refinery\u2019s operational and financial viability.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[158,11187,1883,10,9,11188,2281],"tags":[],"class_list":["post-100194","post","type-post","status-publish","format-standard","hentry","category-energy","category-entre-for-environmental-management-and-sustainable-energy","category-national","category-politics","category-popular","category-tema-oil-refinery","category-tor"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/100194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=100194"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/100194\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=100194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=100194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=100194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}