TOR

P. O. Box CO 599, Tema, Ghana Tel: +233-22-302881 Fax: +233-22-30288 www.torghana.com

Introduction
Petroleum is at the core of the development 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 proximity 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 products 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 and its 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 imports by way of high freight charges. The Tema Oil refinery Company Limited aims at minimizing refined products imports by utilizing fully the operating capacities of the processing plants. At the same time, the company will minimize 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 conversion refinery. The most valuable asset of the company has always been its workforce. The employees have remained hard working, dedicated, loyal and resourceful. These attributes have contributed substantially to the achievements in production,

finance and safety. The company will continue to work hard at increasing Shareholder value, fostering good relations with all stakeholders and playing good corporate citizenship by providing social services in the areas in which it operates.

marily in Ghana, mainly through the refining of crude oil, in a safe, efficient, cost effective and environmentally friendly manner to increase shareholder value.

Objectives
The objectives of TOR are as follows: l Focusing on its core business of crude oil refining l Introducing refining process technologies to maximize yield from crude oil l Managing operations efficiently for profit and growth l Ensuring manpower development and adequate compensation for all employees l Applying the best corporate governance principles

History
Ghanas only crude oil refinery, situated at Tema about 24 kilometres from the capital, Accra was originally named the Ghanaian Italian Petroleum (GHAIP) Company. It was incorporated as a private limited liability company under the Companies Ordinance (Cap 193) on December 12, 1960. GHAIP was incorporated as a 100% Italian-owned Company. Its shareholders were ANIC Societa per Azioni and AGIP Societa per Azioni, both of Italy. The Government of Ghana became sole shareholder of GHAIP in April 1977 and in 1991 the name was changed to the Tema Oil Refinery (TOR). The Tema Oil Refinery is presently authorized by its Regulations to carry on business as refiners and sellers of petroleum.

NATIONAL INSTITUTIONS IN THE ENERGYSECTOR

- TOR

Strategy
TOR plans to pursue the following strategy to accomplish its objectives l Maximizing cash generation through efficient operational performance at all the processing 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 maintain 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 recovery l Initially, satisfying fully the domestic refined petroleum products requirements, and subsequently, expanding exports of refined petroleum products 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 citizenship by providing social services in the areas in which we operate

Vision & Mission of TOR

TOR has the vision to be a premier crude oil refining company in Africa. The mission of TOR is to ensure adequate and uninterrupted supply of petroleum products pri-

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Core Values
TOR is commitment to Teamwork, Competence, Highest Standards of Integrity, Environment and Community. Commitment to the Community TOR strives to be a trusted corporate citizen and as an integral part of the society, to fulfill our responsibilities to the society and communities in which we operate. Community Social Partnership Community involvement is one of our corporate social responsibilities. 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 by donating part of our profits towards education, health and for community 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 sharing their values and traditions. Commitment to the Environment TOR is committed to making continuous improvement in the management of our environmental impact by working in close partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. 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 including honesty and personal integrity in dealing with customers, business

contacts, the public and each other. We strive to have even more congruence between our words and deeds to deliver genuine value to those we serve. Commitment to Competence Our dedication to competence requires not only continuous learning but also continually improvement upon 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 responsibility.

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Products of TOR
Liquefied Petroleum Gas (LPG)
The main constituents of LPG produced by the Tema Oil Refinery are Propylene and butene. LPG is environmentally friendly and finds use as domestic, commercial and industrial fuel. TOR produces LPG in excess of national requirement and therefore exports the surplus to the countries in the West Africa sub region, Europe and the USA.

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 contains about 0.18% sulphur and has a viscosity range of 2.5 centistokes to 6.5 centistokes. Imports mainly from Europe supplement local production from TOR.

NATIONAL INSTITUTIONS IN THE ENERGYSECTOR

Premix Motor Gasoline (Mogas)

This product is mainly produced for motor vehicles with internal combustion engines. TOR currently supplies single grade gasoline using anti-knock additives (Methyl Cyclopentadienyle Manganese Tricarbonyl or MMT) as octane enhancer. Unleaded gasoline mainly from Europe is imported to supplement production at TOR. The refinery produces a purposemade fuel known as premix for fisher folks who use outboard motors. in the ratio 1:29. Premix is suitable for two-stroke engines.

Cracked Fuels
Cracked 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.

Kerosene
This 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.

- TOR

Aviation Turbine Kerosene (Jet A1)

It is a special grade of kerosene with stringent specifications and is suitable for use in aircraft engines.

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Operations & Processes

Plants Configuration
The 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 designed by AGIP Petroli and constructed by Snam Progetti both of Italy. The refinery was commissioned in 1963 as a hydroskimming plant 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 refining processes were liquefied petroleum gas, gasoline, illuminating and cooking 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 revamped to 45,000 barrels per stream day. In 2002, as the second phase of the expansion and modernization program, a Residue Fluid Catalytic Cracking (RFCC) unit of capacity 14,000 barrels per stream day was commissioned. The RFCC was to convert the low valued residual fuel oil from the CDU into high valued products of LPG and gasoline. Government of Ghana. Ghana does not produce significant quantities of crude oil internally 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 API gravity and 45 Degrees API gravity. The proximity of Ghana to Nigeria and the preference of Tema Oil Refinery for light and sweet crude oils, which form a bulk of Nigerian production, make TOR and NNPC ideal trading partners. Since the capacity of the Topping unit is 45,000 barrels of crude oil a day, the balance of 15,000 barrels of crude oil a day is purchased through a competitive tender organized by the National Petroleum Authority (NPA). TOR transports its crude oil liftings from Nigeria loading-ports to Tema by a time-chartered Panamax tanker (60,000 to 80,000 Metric Tonnes Deadweight). The time-charter arrangement enables TOR to have the vessel continuously 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 deregulation 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 competitive tender to meet TORs supply requirements.

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- TOR

was restricted to managing strategic reserves, thus paving the way for TOR to operate some of the storage depots and to carry out bulk distribution of refined petroleum products.

Production
The Tema Oil Refinery has evolved from a simple hydroskimming plant into one with a secondary conversion unit. The hydroskimming plant comprises the Topping unit, Light Naphtha Merox unit, the hydro treatment unit, the catalytic reforming unit and the LPG treatment unit. The secondary conversion unit is 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.

Commencement of Operation
The GHAIP Company commenced business in 1963 as a tolling refinery 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 the three multinational oil companies. Subsequently in 1983, the Ghana National Petroleum Corporation (GNPC) replaced GSC with an expanded role. In 1996, as part of the restructuring of the oil sector, TOR was given additional responsibility to procure crude oil and refined petroleum products, and to export surplus refined petroleum products, if any. The Bulk Oil Storage and Transportation Company Limited (BOST) was formed in 1998 to manage strategic stocks and undertake bulk distribution of refined petroleum products. In 2000, BOST

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Crude Oil Supply

The Government of Ghana has a crude oil allocation contract, renewable 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 manages the contract on behalf of the

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Storage
The Refinery has a total crude oil storage capacity of 285,000 cubic metres. There are also storage facilities for both finished and semifinished products that service liquefied petroleum gas, Kerosenes, Gasolines, diesel and residual fuel oil.

Depot Management
Loading of petroleum products occurs at the gantries at TOR, Accra Plains, Takoradi, Buipe and Mami Water. These are all Customs Bonded 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 by barges to Buipe. There are two other depots in Kumasi and Bolgatanga under the control of BOST that are currently acting as strategic stocks storage facilities. Liaison officers represent the

Oil Marketing Companies at all the loading gantries and depots. The liaison officers put in request for products on orders from their Head Offices. TORs ownership of product and responsibility towards the Oil Marketing Companies both cease after the tanker goes past the gantry or depot gate. There are ongoing discussions between TOR, BOST and the Ministry of Energy about getting products closer to consumers and effectively decentralizing storage away from the Refinery. It is proposed to do so by increasing storage, loading and unloading facilities across the country.

Distribution
The Commercial Division is the link between TOR and Companies licensed by the Energy Commission to buy petroleum products from TOR. The Oil Marketing Companies deal directly with end users and industrial clients. The Oil Mar-

keting Companies own and operate the forecourts, and sometimes franchise the business. Bulk Road Vehicles are the dominant means of product delivery to the Oil Marketing Companies. TOR sells all the products derived from the processing of crude oil to the Oil Marketing Companies except the surplus of cracked residual 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 Marketing Companies for distribution to the domestic market. There are currently 34 companies licensed to market refined petroleum products in the country but only 27 are operational.

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A Section of the Refinery

- TOR

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