950,000 barrels of Sankofa crude head to TOR as GNPC deepens domestic refining

The Ghana National Petroleum Corporation (GNPC) has supplied approximately 950,000 barrels of Sankofa crude oil to the Tema Oil Refinery (TOR), deepening the link between Ghana’s upstream petroleum production and domestic refining.

The crude was delivered aboard the Sonangol Cazenga and received at TOR under a commercial arrangement between the two state institutions.

The milestone was marked by an inspection of the vessel by a team jointly led by GNPC Chief Executive Kwame Ntow Amoah and TOR Managing Director Edmond Kombat.

For GNPC, the transaction provides an opportunity to create a dependable domestic market for Ghana’s crude while supporting efforts to process more of the country’s petroleum resources locally.

Speaking at the ceremony, Mr Amoah said the arrangement reflects the President’s vision of strengthening linkages between the upstream and downstream petroleum sectors.

He said it would support domestic refining and help retain more value from Ghana’s petroleum resources within the local economy.

“The supply of Sankofa crude to TOR on commercial terms represents more than a transaction between two state institutions. It is an opportunity to take a Ghanaian resource, process more of it in Ghana, and create value across our own petroleum industry,” he said.

Mr Amoah said a dependable national refinery would provide GNPC with a ready domestic market for its crude and lay the foundation for a sustainable commercial relationship between the two institutions.

“We don’t have to look far afield for buyers. We know there is a dependable buyer for our oil in-country, and it is a commercial arrangement,” he said.

He disclosed that GNPC currently has approximately eight to ten similar crude cargoes available annually.

While some of these volumes are committed under existing arrangements, he said increased production could create opportunities to supply additional cargoes to TOR over time.

“We are seeing an uptick in production, and we are continuing with our aggressive exploration efforts, including our onshore pursuit of the Voltaian Basin exploratory programme, to increase production and sustain the supply of crude to the refinery,” Mr Amoah said.

Mr Kombat confirmed that the Sankofa cargo was fully paid for through a Letter of Credit accepted by GNPC, with no debt exposure arising from the transaction.

The Sankofa crude is also considered suitable feedstock for TOR as the refinery rebuilds its operating capacity.

Mr Kombat described it as light and sweet crude, with the potential to yield products including gasoline, gasoil, aviation fuel and LPG.

Beyond crude supply, GNPC and TOR are exploring additional areas of collaboration.

Mr Amoah said discussions are underway on supplying natural gas to support TOR’s refinery operations.

For GNPC, the Sankofa crude arrangement demonstrates the potential of commercially sustainable collaboration between national institutions while creating a platform that can expand alongside Ghana’s growing upstream production.

“We believe the collaboration with TOR will continue to grow stronger,” Mr Amoah said.

GNPC said it remains committed to increasing Ghana’s petroleum production and working with partners across the value chain to ensure the country derives greater and lasting value from its oil and gas resources.