Gov’t planning to build new oil refinery - Prez Mahama

President John Mahama has said government is planning to build a new oil refinery within the Tema Oil Refinery enclave.

“My vision is that, that land over there we will begin the building a new refinery with that,” he said. “We will start the planning of a new 100,000 barrel per day refinery.”

He added that TOR will be revamped to a maximum capacity of 60,000, including refurbishing its storage tanks and expanding the amount of petroleum product TOR produce and store.

President Mahama said “TOR is going to grow its capital base and refinance its debt over a period of time.”

He added that government is going to assist TOR in this regard.

He made this comment in response to news that TOR posted a profit of $800,000 since it resumed operations in February.

TOR managing director, Mr Kwame Awuah Darko disclosed at a church service steps are being taken to clear the company’s debt with the next 10 years.

In 2015, TOR's debt was estimated to be in excess of 1.9 billion Ghana Cedis, however, the MD says the introduction of the Energy Debt Recovery Levy would help to settle the debt

"We have arranged with the banks and changed the debt into a 10-year bond. So we are going to use the TOR component of the Energy Levy to pay the interest on the bond so we pay the debt within the next ten years,” he said on Accra FM.

In March, TOR took delivery of a second million barrels of crude oil from BOST as part of the tolling arrangement between the two companies.

The company is expected to make additional $1.6 million from the second consignment to be processed from May to August 2016.

President Mahama reiterated his vision to make Ghana a power hub in West Africa to workers of TOR.

He has been hailed by the TUC for not kowtowing to pressure to sell TOR.

“You have done well in resisting all attempts and efforts to have the refinery closed down in the midst of all other ill advice,” Kofi Asamoah, TUC Secretary General said at a May day event in Upper West Region.