President John Dramani Mahama has directed the Minister of Energy and Green Transition, John Abdulai Jinapor, to review the current payment arrangement for locally produced crude oil supplied to the Tema Oil Refinery (TOR) and Sentuo Oil Refinery.

The President wants the two refineries to explore the possibility of paying for Ghana’s indigenous crude oil in Ghana cedis instead of the US dollar when they take delivery of crude produced from offshore fields in the Western Region.

Dr Jinapor disclosed this at the commissioning of refurbished facilities at TOR, including the Crude Distillation Unit (CDU), Residue Fluid Catalytic Cracking Unit (RFCC), a 120-ton steam boiler, a new F-61 Crude Heater and other upgraded infrastructure on Saturday, August 1, 2026.

The event also marked the delivery of one million barrels of Ghana’s Jubilee Medium Sweet Crude oil to TOR aboard the MT Apache for refining.

According to the Energy Minister, President Mahama questioned why local refineries process crude oil and sell finished petroleum products in Ghana cedis but are required to purchase the crude using US dollars.

Dr Jinapor said the issue came up during a meeting involving the President, the Minister of Finance and the Governor of the Bank of Ghana.

He explained that when President Mahama asked how TOR and Sentuo paid for crude oil supplies, he informed him that existing arrangements under the Petroleum Holding Fund and the Petroleum Revenue Management Act required the refineries to source foreign exchange and make payments in dollars.

The Minister said President Mahama subsequently directed him to examine the matter and explore alternatives that would reduce pressure on the foreign exchange market.

“Rethink, take a second look at it, when Tema Oil Refinery takes the crude and they process and sell it in Ghana cedis, why don’t we pay Ghana cedi into that account and use our own cedi rather than going to the forex and buying dollars,” Dr Jinapor quoted the President as saying.

He added that the Governor of the Bank of Ghana welcomed the proposal, arguing that reducing the need to purchase foreign exchange for domestic transactions could help ease pressure on the cedi and lower associated costs.

The Minister said further discussions would be held to develop a framework for implementing the proposed payment arrangement.

Crude oil, however, is traded internationally in US dollars under standard industry practice. Companies involved in the production and sale of crude oil, including those operating Ghana’s Jubilee, Bonga and Baleine fields, typically invoice in dollars regardless of where the oil is refined.

The requirement for payment in foreign currency is also backed by Ghana’s legal framework, including provisions under the Petroleum Holding Fund and the Petroleum Revenue Management Act.

Speaking at the ceremony, President Mahama said TOR had received three separate one-million-barrel crude oil consignments since May 2026, including Bonga crude, Baleine crude and Ghana’s own Jubilee Medium Sweet Crude.

He said two million barrels of crude had already been processed into finished petroleum products, while TOR had fully paid for the Jubilee crude supplied to the refinery.

President Mahama also directed the Energy Ministry to work with TOR’s Board and management to develop a strategic plan to expand the refinery’s processing capacity to 100,000 barrels per day.

He further announced plans to restructure TOR to eliminate political interference in its operations, insisting that the refinery’s recent progress had been achieved without direct financial support from the Government of Ghana.