Q. What does TOR stand for? Has this been the company’s name since its inception?
A. The abbreviation stands for Tema Oil Refinery. TOR was originally called the Ghanaian Italian Petroleum (GHAIP) Company and was commissioned to operate as a hydroskimming plant on 28th September 1963.
Q. Who were the original owners of GHAIP?
A. The original owner was Ente Nazionale Indrocarburi (E.N.I Group) of Italy.
Q. When did the ownership change?
A. The ownership changed when an agreement was signed between E.N.I and the Government of Ghana in April 1977. GHAIP was then incorporated as a 100% Ghanaian owned Limited Liability Company.
Q. When was the name “TOR” first used?
A. The name ‘TOR’ was first used in 1990.
Q. What is the core business of TOR?
A. TOR’s core business is to refine crude oil into petroleum product for socio-economic development.
Q. What is the long term plan / vision of the refinery?
A. 1. To be the hub for refining crude oil and exporting finished petroleum products to the ECOWAS Sub-region.
2. To be a commercially viable company.
Q. Who built the initial plant?
A. The refinery plant was designed by AGIP Petroli. However, the facility was constructed by Snam Progetti and Nuovo Pignone.
Q. What is the capacity of the plant?
A. The hydroskimming plant had an initial with Crude Distillation Unit (CDU) capacity of 28,000 barrels per stream day when it was commissioned in 1963. Later on, as part of the first phase of TOR’s expansion and modernization program, the plant was revamped to 45, 000 barrels per stream day in 1997.
Q. What Crude types does TOR process?
A. The CDU at TOR mainly processes various light and sweet crudes, including Brass River, Forcados and Palanca Blend. But in the face of rising crude oil prices, the refinery blends different crudes for the optimization of refining margin.
Q. Does TOR have any additional plant?
A. The goal of every refiner is to obtain the maximum amount of valuable product from every crude oil processed. Research into the need to further process the residue from the hydroskimming plant led to the construction of the Residue Fluid Catalytic Cracker (RFCC), which was previously sold cheaply in the absence of the RFCC.
The residue is further refined to yield more valuable petroleum products.
Q. When was the RFCC commissioned?
A. It was commissioned in 2002, as the second phase of the expansion and modernization program.
Q. What is the total capacity of the RFCC?
A. It has a design processing capacity of 14, 000 barrels per stream day.
Q. How much crude oil does TOR process annually?
A. The Company is able to process a total of 2,000,000 MT of crude oil annually.
Q. Can TOR refine the jubilee crude oil found in Ghana?
A. Yes. TOR can refine the jubilee crude discovered in Ghana.
Q. Where does TOR source for crude oil for processing?
A. The Company sources for crude oil mainly from Nigeria and other countries including, Equatorial Guinea, Cameroon, Gabon, Angola and Congo.
Q. How does TOR receive crude oil to the refinery?
A. The refinery is linked to an oil jetty and the Single Point Mooring (SPM) and Conventional Buoy Mooring (CBM) at the Port of Tema by pipelines of various diameters for the importation of crude oil and refined petroleum products.
Q. What finished products are obtained from the processing of crude oil?
A. The finished products derived from processing at the hydroskimming unit include, Liquefied Petroleum Gas (LPG), Light Gasoline, Heavy Gasoline, Domestic Kerosene, Aviation Turbine Kerosene (Jet A1), Gas oil (Diesel), and Low Sulphur Fuel oil (LSFO).
The products obtained from the RFCC are Liquefied Petroleum Gas, Motor Gasoline, Light Cycle Oil (LCO) Heavy Cycle oil (HCO) and Clarified Oil.
Q. What is the weekly National consumption of the various finished products?
A. The weekly National consumption is as follows;
LPG 4,000 tonnes
Premium/Premix 11,000 tonnes
Kerosene 1,300 tonnes
ATK 2,500 tonnes
Gas oil 22,000 tonnes
Fuel oil 1,100 tonnes
Q. What are the refinery yields?
A. It depends on the type of crude oil being processed.
Q. What pricing formula is applied?
A. The pricing formula is based on import parity.
Q. Is there tax protection for the importation of finished products?
A. There is no tax on imported finished product.
Q. What percentage of the market does the refinery meet?
A. About 55 – 60% of the market demand.
Q. How is the demand gap met?
A. The demand Gap is met through the importation of finished products by Bulk Distribution Companies (BDCs)
Q. How does TOR market its brands of the finished products?
A. Currently our products are not branded. However, it is part of a long term strategy.
Q. Are there any products you export?
A. TOR exports some of its petroleum products, mainly cracked fuels oil, LPG, and Naphtha. However, in the face of high demand for petroleum products locally, export has been relaxed.
Q. Does the refinery depend on electrical power from the National grid?
A. TOR generates eighty percent (80%) of its power requirement internally, and relies on the national grid for the remaining twenty percent (20%). TOR intends to be self sufficient in power generation by the end of 2021 /2013.
Q. What is the installed capacity for electrical power generation?
A. 5.5 megawatts. This is provided by one turbine generator. TOR is procuring a new 6.5MW generator.
Q. What is the refinery’s current demand for electrical power?
A. About 6.5 megawatts.
Q. What kind of generators do we have?
A. Steam turbine generators.
Q. What is the tankage capacity?
A. A million Metric Tonnes.
Q. Is there adequate storage capacity for LPG?
A. The total storage capacity for LPG is 7560 metric tonnes.
Q. Does Ghana still use leaded gasoline?
A. No. Ghana phased out leaded gasoline in 2004.
Q. Does TOR’s products meet international specification?
A. Definitely, there are National Standards which TOR meets. TOR also operates within the African Refiners specification. Currently, TOR operates within AFRI II and working ultimately towards AFRI IV (which is equivalent to Euro IV)
Q. What are the new projects for which you require investment?
A. 1. TOR expansion project of 120,000 bpsd stand alone CDU
2. Revamping of Residue Fluid Catalytic Cracker
3. Retrofitting of Catalytic Reforming Unit.
4. Construction of an automated loading gantry
Q. What are the options available to TOR in terms of expansion?
A. 1. Building a new processing capacity
2. Upgrading capacity of utilities.
Q. What kind of investment relation does TOR require?
A. TOR welcomes investment in the form of Public Private Partnership, Joint Venture and loans.
Q. Who finances the operations of TOR?
A. TOR finances its own operations. This is mainly through internally generated revenue and borrowing from financial institutions.
Q. How much does TOR owe?
A. As at 31st December 2010, TOR owed to the tune of 1.2 billion Ghana Cedis.
Q. How did TOR incur the debt?
A. As a result of the nature of petroleum pricing regimes used, sales revenue have not been sufficient to pay for letters of credit established for crude oil imports and had to be financed by Ghana Commercial Bank under overdraft facilities. This overdraft had attracted penal interest charges which accumulated overtime to create the huge overdraft currently referred to as TOR(NATIONAL PETROELUM) DEBT.
Q. How does TOR intend to re-engineer the finances of the refinery?
A. TOR shall restructure the debt by borrowing a dollar denominated lower interest loan to pay off the existing creditors.
TOR intends to negotiate with the new lender for a repayment period between seven to ten years with a two year moratorium.
The TOR Debt Recovery Levy Fund (TDRLF) shall be the primary source of repayment of the long term loan.
Q. What strategies has TOR put in place to forestall the recurrence of the unfavourable financial situation?
A. TOR has instituted control mechanisms to ensure its competitive, profitable, effective and resources used in efficient manner. For instance, the refined petroleum products is priced at import parity.
Currently, TOR sells directly to Bulk Distribution Companies.
Each crude cargo is accounted for separately.
All capital projects are evaluated and ranked by their positive net present value before implementation.
Q. Has the deregulation of the petroleum sector affected TOR in any way?
A. Deregulation of the downstream sector has brought in competition. TOR lost part of its market share to the Bulk Distribution Companies (BDCs). The Company is however improving upon its performance and profitability in the face of competition.
Q. What is the total workforce?
A. The Company to date has total staff strength of eight hundred (800).
Q. What employment opportunities exist at TOR?
A. Opportunities exist for individuals with skills and knowledge in engineering including chemical, mechanical, electrical /instrument, civil, projects, environment and safety.
Q. Does TOR depend on foreign expertise to carry out operations?
A. NO. However, TOR has operations and maintenance contract with its overseas partners who complement the refinery’s operations when necessary.
Q. Does TOR have an environmental policy?
Q. What is TOR’s environmental policy about?
A. TOR recognises the potential impact of its operations on the well being of employees, the environment and surrounding communities. TOR is therefore committed to protecting human health and the environment as we conduct our business of refining crude oil into clean fuels for the market. We shall strive to continually improve our environmental performance by complying with all environmental laws and regulations and managing environmental issues in the same manner as all other aspects of our business.
Q. Is there collaboration between TOR and the Environmental Protection Agency (EPA)?
A. TOR collaborates with the Environmental Protection Agency (EPA) to prevent environmental pollution and negative health impacts.
TOR is also implementing an environmental management plan which ensures that all major and minor non-conformances are addressed within the EMP implementing period.
Personnel from the refinery also participate in various EPA organised training programs and workshops including oil spill preparedness and response, environmental performance rating and environmental impact assessment.
Q. What is the future of TOR?
A. Very bright. The new culture of doing business at TOR, which is to be competitive with any refiners in the world, to be customer focused and market oriented, positions TOR strategically to be the preferred choice for the Bulk Distribution Companies.
Q. How can one obtain information on TOR?
A. Contact the Public Affairs Office at TOR to receive a hard copy