The Tema Oil Refinery (TOR) is preparing to increase its production capacity as part of renewed efforts to strengthen operations and improve output at the facility.
The refinery is currently undertaking technical processes aimed at expanding its processing capability from 28,000 barrels per stream day to 45,000 barrels per stream day.
The expansion forms part of broader plans to revitalise the refinery and enhance its contribution to the country’s petroleum sector.
Officials say the planned increase will be achieved through the integration of an additional processing unit, known as the F61 unit, which will operate alongside the existing F1 unit.
Both units will be connected to the refinery’s crude distillation system to improve overall efficiency and output.
Management explained that operations have continued since the refinery resumed production, with engineers currently working through transitional technical procedures required to incorporate the new unit into the processing system.
Once the integration is completed, the refinery expects its output to rise significantly from the current level of 28,000 barrels per stream day to 45,000 barrels per stream day.
The refinery is presently operating under a tolling arrangement, a system in which private companies supply crude oil to the facility for processing.
Under this arrangement, the refinery refines the crude and charges a processing fee, while the refined petroleum products are returned to the companies that provided the crude.
Corporate Affairs Officer of TOR, Godwin Mahama Ayaba, disclosed these developments during an interview on Citi FM on Monday, March 9.
He explained that under the tolling system, the refinery does not control the marketing or distribution of the finished products, as those decisions are taken by the crude oil suppliers.
Mr Ayaba added that while the refinery’s current nameplate capacity stands at 28,000 barrels per stream day, the introduction of the F61 unit will push output to 45,000 barrels per stream day.
He further indicated that management is also considering plans to expand capacity to about 60,000 barrels per stream day in the medium term.
Oil prices continued to rise on Thursday despite major countries agreeing to release a record amount of oil from their emergency reserves as they try to curb the impact of the Iran war.
Brent crude rose by almost 9% to top $100 ($74.79) a barrel in Asia trading even after all 32 members of the International Energy Agency's (IEA) said they will release 400 million barrels in response to supply concerns.
On Wednesday, Iran warned that oil could reach $200 a barrel as its attacks on ships intensify in the Strait of Hormuz, a key waterway for energy shipments.
An Islamic Revolutionary Guard Corps (IRGC) spokesperson said any vessel linked to the US, Israel or their allies will be targeted.
"You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel," the spokesperson said.
"The price of oil depends on regional security, and you are the main source of insecurity in the region."
The narrow shipping route is crucial to the global economy as about a fifth of the world's energy supplies usually passes through it.
IEA members represent around two thirds of global energy production and consumption.
The release of reserves is more than double the previous IEA record, which came after Russia's invasion of Ukraine in 2022.
The IEA's decision is "historically significant" but is only a "temporary buffer", said Martin Ma from the Singapore Institute of Technology.
Oil prices will stay high as long as there is a risk to supplies and latest jump suggests that traders are still expecting a "prolonged" disruption, he added.
Global oil markets have been extremely volatile since the US and Israel launched airstrikes against Iran on 28 February, with Brent crude reaching almost $120 a barrel earlier this week.
That has pushed up fuel prices have around world.
In the US, the average price of petrol rose above $3.50 a gallon on Tuesday, according to the American Automobile Association.
Many countries in Asia, which are heavily reliant on energy from the Middle East, have been hit particularly hard.
Long queues were seen at petrol stations in the Philippines,Thailand and Vietnam this week as people raced to fill up with fuel.
Thai authorities have called for staff at most government agencies to work from home to conserve energy. Officials are also being discouraged from non-essential overseas travel.
The Philippines has also started a four-day work week for its government to help cut down on energy use.
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