Sentuo Oil Refinery is set to receive approximately one million barrels of crude oil from Jubilee Field for processing. This is expected to strengthen local refining capacity, enhance fuel security, and potentially ease petroleum product prices for consumers.
The development was disclosed by Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, who described the decision as a timely intervention amid rising global fuel supply uncertainties and escalating costs associated with importing refined petroleum products.
He noted that supplying locally produced crude to domestic refineries would reduce Ghana’s reliance on imported refined products while helping retain more value within the local economy.
“Sentuo Refinery is indeed taking delivery of some 1 million barrels of crude from the Jubilee fields. Again, this is one of the best things the government could do considering the conflict that pertains in the Middle East.
“At present, if you are paying so high for insurance premiums and other premiums to be able to land finished products and you have local refineries that could easily process your crude, then it is only reasonable and rationale that you begin to look at giving them that crude so that you don’t take it to Europe for them to refine and go to buy back from Europe,” he said.
Duncan Amoah described the initiative as one of the most significant steps taken by the government to improve fuel security and mitigate the impact of volatile global energy markets on Ghanaian consumers.
He further revealed that the Tema Oil Refinery (TOR) is expected to receive a similar volume of crude oil by the first week of July, ensuring a more consistent flow of feedstock to local refineries.
While welcoming the move, he urged the government to extend similar support to smaller modular refineries such as Platon and Akwaaba to broaden local participation in the downstream petroleum sector.
“TOR had already gotten some cargo, if you recall, not long ago, and so it would be fair that Sentuo takes the first parcel. But what I am aware of is that TOR would also receive similar cargo by the first week of July, and that would mean that you would almost always have some of your liftings coming to the local refineries.
“What we would want the government to consider is also to look at the smaller modular refineries like Platon and Akwaaba and also begin to look for ways to give them also the same concessions that they can also be able to process and even get the RFO that industries might need,” he stated.
Duncan Amoah also indicated that sustained crude allocations to local refineries could gradually reduce fuel costs by limiting Ghana’s exposure to high shipping and insurance charges currently affecting global fuel trade, particularly amid concerns over disruptions to international supply routes.
He expressed hope that the policy would be maintained throughout the year as the government seeks to cushion consumers from rising fuel prices and strengthen the country’s energy security.
“If this is sustained, it has the tendency to gradually ease fuel prices because then again you could be cutting back on the expensive insurance premiums that pertain currently globally due to the closure of the Straits of Hormuz, and then again the squeeze on global fuel supplies.
“I think that this is something that the Ministry of Energy has done very well. We only hope that it is sustained through the year because fuel prices have already become quite high for the Ghanaian pocket,” Duncan Amoah remarked.
