A Former Chief Executive of the Ghana National Petroleum Corporation (GNPC), Alex Mould has said that the government needs to inject about $300 million into the Tema Oil Refinery (TOR) in order to operate efficiently.
In an interview with Accra-based Citi FM, Mr Mould said that the government will have to decide on how it will raise the funds for TOR.
“So the government would have to decide how it is going to raise the money. Either it is going to bring in a strategic investor or not. Or sell the refinery totally to an investor,” he observed.
Mr Mould suggested that one of the best options for government is to look for a private investor.
“Government would have to decide whether it wants to operate TOR in its current state as a hundred percent government-owned entity or sell some of the company’s share to a strategic investor to raise the funds needed to upgrade the company.”
He explained that the privatisation of the company will help address challenges of the mismanagement of the facility. He added that $300 million can boost the company’s production as well as maintain its plants.
Ghana’s only refinery has been unable to operate to its maximum capacity in recent times due to production losses, frequent breakdowns, as well as mismanagement of the facility.
TOR redevelopment has been a topic of national discussion for some time now.
In a related development, the government is seeking to woo private investors for its $50 billion Petroleum Hub projects.
It has given an indication that the project will be driven by the private sector.