Tema Oil Refinary

7/27/2019 Tema Oil Refinary

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TORP. O. Box CO 599, Tema, Ghana

Tel: +233-22-302881

Fax: +233-22-30288www.torghana.com


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ENERGYWORLD / Africa - 2010/11

GHANA

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IONALINSTITUTIONS

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ENERGYSECTOR

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OR

IntroductionPetroleum is at the core of the de-velopment of every modern nation.

Alternatives may satisfy a few of

the uses of crude oil but there is no

known alternative that can match

all the benefits that accrue from the

use of crude oil. It is estimated that

total world proved reserves of

crude oil of 1.2 trillion barrels would

last about forty years at current rate

of production.

Ghana is situated in the proxim-

ity of many oil-producing countries,

for example Nigeria, Cameroon,Angola, Gabon etc. Indications are

that Ghana itself has the potential

of producing oil in commercial

quantities internally given adequate

investment.

The domestic market in Ghana

consumes about 1.8 million Metric

Tonnes of refined petroleum prod-

ucts annually. It is isolated from the

main oil refining centers of the

world e.g. Rotterdam in Europe, US

Gulf Coast and Singapore in Asia.

The isolated domestic market andits proximity to many oil producing

countries give the Tema oil Refinery

the unique advantages of having a

captive market and making savings

on freight associated with crude oil

transportation.

The inherent disadvantage of

an isolated market is the heavy

penalty exacted on exports and im-

ports by way of high freight

charges. The Tema Oil refinery

Company Limited aims at minimiz-

ing refined products imports by uti-

lizing fully the operating capacitiesof the processing plants. At the

same time, the company will mini-

mize exports by providing fully the

national requirements of refined

products.

The Tema Oil Refinery was built

in 1963 as a hydroskimming plant.

It has since undergone revamping

and upgrading to become a con-

version refinery.

The most valuable asset of the

company has always been its work-

force. The employees have re-

mained hard working, dedicated,

loyal and resourceful. These attrib-

utes have contributed substantially

to the achievements in production,

finance and safety.

The company will continue to

work hard at increasing Share-

holder value, fostering good rela-

tions with all stakeholders and

playing good corporate citizenship

by providing social services in the

areas in which it operates.

HistoryGhanas only crude oil refinery, sit-

uated at Tema about 24 kilometres

from the capital, Accra was origi-

nally named the Ghanaian Italian

Petroleum (GHAIP) Company. Itwas incorporated as a private lim-

ited liability company under the

Companies Ordinance (Cap 193)

on December 12, 1960. GHAIP

was incorporated as a 100% Ital-

ian-owned Company. Its sharehold-

ers were ANIC Societa per Azioni

and AGIP Societa per Azioni, both

of Italy.

The Government of Ghana be-

came sole shareholder of GHAIP in

April 1977 and in 1991 the name

was changed to the Tema Oil Re-

finery (TOR). The Tema Oil Refin-ery is presently authorized by its

Regulations to carry on business as

refiners and sellers of petroleum.

Vision & Mission of TORTOR has the vision to be a premier

crude oil refining company in Africa.

The mission of TOR is to en-

sure adequate and uninterrupted

supply of petroleum products pri-

marily in Ghana, mainly through the

refining of crude oil, in a safe, effi-

cient, cost effective and environ-

mentally friendly manner to

increase shareholder value.

ObjectivesThe objectives of TOR are as fol-

lows:

l Focusing on its core business

of crude oil refining

l Introducing refining process

technologies to maximize yield

from crude oil

l Managing operations efficientlyfor profit and growth

l Ensuring manpower develop-

ment and adequate compensa-

tion for all employees

l Applying the best corporate

governance principles

StrategyTOR plans to pursue the following

strategy to accomplish its objec-

tives

l Maximizing cash generation

through efficient operational

performance at all the process-

ing units

l Rebuilding the capital base of

the company and making it

profitable

l Setting and achieving critical

standards in production, costs

and profitability in order to main-

tain cost and performance focus

l Promoting efficiency through

cost reduction and cost control

l Negotiating constantly with the

statutory bodies for ex-refinery

prices based on full cost recov-ery

l Initially, satisfying fully the do-

mestic refined petroleum prod-

ucts requirements, and

subsequently, expanding ex-

ports of refined petroleum prod-

ucts to the ECOWAS

sub-region

l Fostering good relations with all

stakeholders

l Maintaining high degree of

safety consciousness among

Staff

l Playing good corporate citizen-

ship by providing social serv-

ices in the areas in which we

operate


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G

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Core ValuesTOR is commitment to Teamwork,

Competence, Highest Standards ofIntegrity, Environment and Commu-

nity.

Commitment to the Community

TOR strives to be a trusted corpo-

rate citizen and as an integral part

of the society, to fulfill our responsi-bilities to the society and communi-

ties in which we operate.

Community Social Partnership

Community involvement is one ofour corporate social responsibili-

ties. We believe in interdependence

and are therefore committed to

helping the communities in which

we operate. We try to improve the

livelihood of the communities bydonating part of our profits towards

education, health and for commu-

nity development projects.We form a partnership with

communities in which we work.

The well being of the community is

our priority and we do this by shar-ing their values and traditions.

Commitment to the Environment

TOR is committed to making con-

tinuous improvement in the man-

agement of our environmentalimpact by working in close partner-

ship with others to promote envi-ronmental care, increase

understanding of environmental is-

sues and disseminate good prac-

tice.

Human Resource

Human Resource Selected with

Care, Treated with Respect and

Rewarded for Performance

Commitment to the Highest

Standards of Integrity

We demonstrate the highest level

of moral and ethical values includ-ing honesty and personal integrity

in dealing with customers, business

contacts, the public and each other.

We strive to have even more con-

gruence between our words anddeeds to deliver genuine value to

those we serve.

Commitment to Competence

Our dedication to competence re-quires not only continuous learning

but also continually improvementupon our processes and products

to be more successful and effective

in addressing the need of those we

serve

Commitment to Teamwork

We embrace a collaborative work

environment, support diversity in

the workplace and recognize the

need for taking personal responsi-bility.

Liquefied Petroleum Gas

(LPG)The main constituents of LPG pro-

duced by the Tema Oil Refinery are

Propylene and butene. LPG is en-

vironmentally friendly and finds use

as domestic, commercial and in-dustrial fuel. TOR produces LPG in

excess of national requirement and

therefore exports the surplus to the

countries in the West Africa sub re-

gion, Europe and the USA.

Motor Gasoline (Mogas)This product is mainly produced for

motor vehicles with internal com-

bustion engines. TOR currently

supplies single grade gasoline

using anti-knock additives (Methyl

Cyclopentadienyle Manganese Tri-carbonyl or MMT) as octane en-

hancer. Unleaded gasoline mainly

from Europe is imported to supple-

ment production at TOR.

KeroseneThis is petroleum distillate used

mainly for illumination in wick-fed

lamps, for cooking in stoves and

pressure burners. It is a very useful

fuel for the rural communities.

Aviation Turbine Kerosene

(Jet A1)It is a special grade of kerosene

with stringent specifications and is

suitable for use in aircraft engines.

Gas Oil (Diesel)This is also petroleum distillate. It is

commonly referred to as diesel oil

and is suitable for high-speed

diesel engines. Gas oil produced at

the Tema Oil Refinery normally con-

tains about 0.18% sulphur and hasa viscosity range of 2.5 centistokes

to 6.5 centistokes. Imports mainly

from Europe supplement local pro-

duction from TOR.

PremixThe refinery produces a purpose-

made fuel known as premix for

fisher folks who use outboard mo-

tors. in the ratio 1:29. Premix is

suitable for two-stroke engines.

Cracked FuelsCracked fuels are a blend of Light

Cycle Oil, Heavy Cycle Oil and

Clarified Oil produced from the

Residue Fluid Catalytic Cracking

unit. These are blended in varying

ratios to produce inland diesel oil

and inland fuel oil. The inland fuel

oil is used mainly for low and

medium speed diesel engines.

Products of TOR


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Plants ConfigurationThe refinery covers a total area of

440,000 square meters. It is linked

to an oil jetty at the Port of Tema by

pipelines of various diameters for

the transportation of crude oil and

refined petroleum products.

TORs refining plant was de-signed by AGIP Petroli and con-

structed by Snam Progetti both of

Italy. The refinery was commis-

sioned in 1963 as a hydroskimmingplant with an initial capacity of

28,000 barrels per stream day. It

was to process various light and

low sulphur crude oils, such as

Bonny Light and Brass River from

Nigeria, and Palanca Blend from

Angola. The products of the refin-

ing processes were liquefied petro-

leum gas, gasoline, illuminating andcooking kerosene, aviation turbine

kerosene, gasoil or diesel and

residual fuel oil.

In 1997, as part of the first

phase of TORs expansion and

modernization program, the Crude

Distillation Unit (CDU) was re-

vamped to 45,000 barrels per

stream day. In 2002, as the second

phase of the expansion and mod-

ernization program, a Residue Fluid

Catalytic Cracking (RFCC) unit of

capacity 14,000 barrels per stream

day was commissioned. The RFCCwas to convert the low valued resid-

ual fuel oil from the CDU into high

valued products of LPG and gaso-

line.

Commencement of OperationThe GHAIP Company commenced

business in 1963 as a tolling refin-

ery by processing crude oil for the

major oil companies, namely, BP,

Shell and Mobil for a fee. In 1977,

the Government of Ghana (GOG),

acting through the Ghana Supply

Commission (GSC), replaced thethree multinational oil companies.

Subsequently in 1983, the Ghana

National Petroleum Corporation

(GNPC) replaced GSC with an ex-

panded role.

In 1996, as part of the restruc-

turing of the oil sector, TOR was

given additional responsibility to

procure crude oil and refined petro-

leum products, and to export sur-

plus refined petroleum products, if

any. The Bulk Oil Storage and

Transportation Company Limited

(BOST) was formed in 1998 to

manage strategic stocks and un-

dertake bulk distribution of refined

petroleum products. In 2000, BOST

was restricted to managing strate-

gic reserves, thus paving the way

for TOR to operate some of the

storage depots and to carry out

bulk distribution of refined petro-

leum products.

ProductionThe Tema Oil Refinery has evolved

from a simple hydroskimming plant

into one with a secondary conver-

sion unit. The hydroskimming plant

comprises the Topping unit, Light

Naphtha Merox unit, the hydro

treatment unit, the catalytic reform-

ing unit and the LPG treatment unit.

The secondary conversion unitis essentially made up of a Residue

Fluid Catalytic Cracking facility.

In addition to the processing

units, there is also a Utilities unit, a

Movement of Products (MOP) unit

and a Waste Water Treatment

(WWT) unit.

Crude Oil SupplyThe Government of Ghana has a

crude oil allocation contract, re-

newable annually, with the Nigerian

National Petroleum Corporation

(NNPC) for the supply of 30,000

barrels of crude oil a day. Tema Oil

Refinery company Limited man-

ages the contract on behalf of the

Government of Ghana.

Ghana does not produce signif-

icant quantities of crude oil inter-

nally and therefore imports all its

requirements. Tema Oil Refinery

prefers feeding the plants on a diet

of low sulphur crude oils, typically

of quality between 30 Degrees APIgravity and 45 Degrees API gravity.

The proximity of Ghana to Nigeria

and the preference of Tema Oil Re-

finery for light and sweet crude oils,

which form a bulk of Nigerian pro-

duction, make TOR and NNPC

ideal trading partners.

Since the capacity of the Top-

ping unit is 45,000 barrels of crude

oil a day, the balance of 15,000 bar-

rels of crude oil a day is purchased

through a competitive tender or-

ganized by the National Petroleum

Authority (NPA).

TOR transports its crude oil lift-

ings from Nigeria loading-ports to

Tema by a time-chartered Pana-

max tanker (60,000 to 80,000 Met-

ric Tonnes Deadweight). The

time-charter arrangement enables

TOR to have the vessel continu-

ously available for use and also to

lock in favorable freight rates for the

duration of the contract.

An oil jetty located at the Port of

Tema is available to TOR for the

loading and discharging of cargoes.The oil jetty, which was built in

1963, has a draft of 9.6 metres and

therefore limits the sizes of vessel

that call. There are five pipelines for

transporting refined petroleum

products. They are the 24-inch

pipeline for transporting crude oil,

the 18-inch pipeline for diesel or

residual fuel oil, the 14-inch pipeline

for gasoline or diesel, the 10-inch

pipeline for Jet A1 and naphtha

(heavy gasoline) and the 6-inch

pipeline for liquefied petroleum gas.

Under the government deregu-lation policy of the downstream

sector of the petroleum industry,

TOR no longer imports the shortfall

of refined products arising out of its

crude oil processing operations.

The responsibility of importation of

refined products has shifted to the

Bulk Oil Storage and Transportation

(BOST) Company Limited and the

Oil Marketing Companies.

TOR would normally advise the

National petroleum Authority (NPA)

of its refined products requirements

and the delivery date ranges. The

NPA would in turn organize a com-

petitive tender to meet TORs sup-

ply requirements.

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Operations & Processes


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StorageThe Refinery has a total crude oil

storage capacity of 285,000 cubicmetres. There are also storage fa-

cilities for both finished and semi-

finished products that service

liquefied petroleum gas,

Kerosenes, Gasolines, diesel and

residual fuel oil.

Depot ManagementLoading of petroleum products oc-

curs at the gantries at TOR, Accra

Plains, Takoradi, Buipe and Mami

Water. These are all CustomsBonded areas. Akosombo serves

as a transitory depot from Mami

Water to Buipe. That is, products

are transferred by pipeline from

Mami Water to Akosombo, from

where they are transported bybarges to Buipe. There are two

other depots in Kumasi and Bol-

gatanga under the control of BOSTthat are currently acting as strate-

gic stocks storage facilities.

Liaison officers represent the

Oil Marketing Companies at all the

loading gantries and depots. The li-aison officers put in request for

products on orders from their Head

Offices. TORs ownership of prod-

uct and responsibility towards the

Oil Marketing Companies both

cease after the tanker goes pastthe gantry or depot gate.

There are ongoing discussionsbetween TOR, BOST and the Min-

istry of Energy about getting prod-

ucts closer to consumers and

effectively decentralizing storageaway from the Refinery. It is pro-

posed to do so by increasing stor-

age, loading and unloading facilities

across the country.

DistributionThe Commercial Division is the linkbetween TOR and Companies li-

censed by the Energy Commission

to buy petroleum products fromTOR. The Oil Marketing Compa-

nies deal directly with end users

and industrial clients. The Oil Mar-

keting Companies own and operate

the forecourts, and sometimes fran-chise the business. Bulk Road Ve-

hicles are the dominant means of

product delivery to the Oil Market-

ing Companies.

TOR sells all the products de-

rived from the processing of crudeoil to the Oil Marketing Companies

except the surplus of cracked resid-ual fuel oil and naphtha, which are

exported. TOR sells the products

to the Oil Marketing Companies at

ex-refinery prices.The main source of revenue to

the Tema oil Refinery Company

Limited is the bulk sale of refined

petroleum products to the Oil Mar-

keting Companies for distribution to

the domestic market. There arecurrently 34 companies licensed to

market refined petroleum products

in the country but only 27 are oper-

ational.

G

HANA

-NATIONALINSTITUTIONS

IN

THE

ENERGYSECTOR

-TOR

A Section of the Refinery

Tema Oil Refinary

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