Mahama Orders Energy Minister to Rethink Crude Payment Arrangements in Cedis

President John Dramani Mahama has directed the Energy Minister to reconsider how Ghana's state-owned oil refineries, Tema Oil Refinery (TOR) and Sentuo, pay for the country's indigenous Jubilee Medium Sweet Crude Oil.

The President wants TOR and Sentuo to use cedis instead of dollars when they take delivery of the oil. This decision comes after President Mahama questioned why these refineries process and sell petroleum products in Ghana cedis but have to pay for the crude in US dollars.

According to Minister John Jinapor, who was present at a meeting with the President, Governor of the Bank of Ghana, and Finance Minister, President Mahama instructed them to rethink this arrangement. The Minister explained that currently, TOR and Sentuo have to obtain foreign currency for crude oil, including Ghanaian-produced oil, as required by law under the Petroleum Holding Fund and Petroleum Revenue Management Act.

The President also directed the Energy Minister to work with the TOR Board and management to increase the refinery's processing capacity to 100,000 barrels a day. Additionally, he announced plans to restructure TOR to remove political interference from its operations.