- Energy Minister Says Ghana Must Stop Exporting Crude and Importing Finished Fuel
Ghana has taken a major step towards local petroleum value addition after crude oil from the Jubilee Field was delivered to Sentuo Oil Refinery for processing, marking what the government says should become the beginning of a sustained domestic refining programme rather than a one-off event.
Speaking at the arrival and docking ceremony, Minister for Energy and Green Transition, John Abdulai Jinapor, described the delivery as a historic milestone in Ghana’s petroleum industry and a critical part of the country’s broader effort to maximise value from its natural resources.
“Today indeed marks a historic significant milestone in Ghana’s petroleum industry and in our broader national effort to maximise value from our national resources,” the Minister said in his address.
He said the delivery of Ghana’s locally produced crude to Sentuo for processing goes beyond a routine commercial transaction.
“This achievement goes beyond a commercial transaction. It represents a deliberate national policy decision to deepen local value addition, strengthen energy security, promote industrialisation and retain a greater share of the benefit derived from Ghana’s petroleum resources within our economy,” he said.
For years, Ghana has exported crude oil while importing substantial volumes of refined petroleum products, exposing the economy to global fuel price volatility, foreign exchange pressures and supply-chain disruptions.
Mr Jinapor said that model, although useful in ensuring product availability, was no longer sustainable.
“For many years Ghana exported crude oil whilst importing substantial volumes of refined products here in Ghana,” he noted, adding that the country’s own refinery had been “virtually down” for about eight years.
“True economic transformation requires that we process, refine and add value to our resources locally,” he said. “By so doing, we end up creating jobs, building technical capacity, strengthening domestic industries and generating greater economic benefit for our people.”
The Minister said the presence of workers at the refinery was itself evidence of the job-creation impact of local refining.
“Can you imagine if we did not have this refinery? It meant that hundreds of you seated here would have either been home looking for jobs or competing with others for limited space,” he said.
The ceremony comes at a time when government is seeking to reposition Ghana from a raw commodity exporter into a country that processes and adds value to its natural resources.
Mr Jinapor said the milestone aligns with President John Dramani Mahama’s long-standing vision of deepening local participation and value addition, not only in the petroleum sector but across Ghana’s natural resource economy.
He recalled that in 2016, about one million barrels of crude oil from the TEN Fields was delivered to the Tema Oil Refinery for processing under a similar value-addition agenda. However, he said that momentum was lost after the change in administration.
“Today, in line with the President’s vision, we are delivering the first parcel of crude oil from the Jubilee Field to the Sentuo Refinery,” he said.
The Minister disclosed that Sentuo Oil Refinery has emerged as one of the most significant private sector investments in Ghana’s downstream petroleum industry.
He said the refinery was originally designed as a 100,000 barrels-per-day facility, with the first phase completed in 2024 and currently processing about 40,000 barrels per day.
According to him, the company is preparing to commence construction and completion of the second phase, which will raise the refinery’s full capacity to 100,000 barrels per day.
“On completion of the second phase, this will take the refinery’s capacity to 100,000 barrels per day,” he said.
Mr Jinapor also disclosed that Tema Oil Refinery had taken delivery of one million barrels of crude oil for processing, suggesting that Ghana’s local refining drive is being pursued across multiple facilities.
“If these refineries are processing at their peak, Ghana would no longer need to import crude oil. We would rather become an exporter when it comes to finished products,” he said.
The Minister linked the urgency of local refining to recent geopolitical tensions in the Middle East, particularly the conflict involving the United States and Iran, which he said posed serious risks to fuel supply and pricing.
He revealed that government held a special Cabinet meeting to discuss the possible impact of the conflict and how Ghana could take proactive steps to mitigate its effects.
According to him, the President directed the Ministry of Energy, working with other Cabinet Ministers, to explore the possibility of refining Ghana’s crude locally instead of exporting it in raw form.
“The Ministry of Energy responded swiftly because we firmly believe that domestic refining is not only an energy security imperative, but also a critical component of our industrial transformation agenda,” he said.
He said the Ministry subsequently engaged key stakeholders, including Sentuo, the Jubilee Partners, Sankofa Partners, the National Petroleum Authority, BOST, GNPC, Tullow Ghana, Kosmos Energy, PetroSA, Vitol and others to develop the commercial and operational arrangements that made the delivery possible.
“I’m pleased to announce that these collaborative efforts have yielded today’s positive results,” he said.
Beyond immediate commercial benefits, Mr Jinapor said the initiative has major strategic implications for Ghana.
A stronger domestic refining industry, he argued, would improve petroleum supply reliability, reduce exposure to international supply shocks, retain foreign exchange, create employment and support ancillary industries across the petroleum value chain.
“With refined oil, you get better by-products and other products which benefit the entire value chain, and for me that is highly commendable,” he said.
The Minister assured investors and industry players that the government remains committed to policies that encourage investment, support local value addition and strengthen collaboration across the petroleum value chain.
“We will continue to provide the necessary environment, a business-friendly environment, so that we can attract more investments into this country,” he said.
For government, the bigger objective is clear: moving Ghana away from the old extract-and-export model.
“As we celebrate this important milestone, let us remain focused on the bigger objective for us: transforming Ghana from a producer of raw materials into a nation that increasingly processes, refines and adds value to its own resources,” Mr Jinapor stated.
He said that path is essential for industrial transformation, sustainable job creation, economic resilience and shared prosperity.
But the Minister also cautioned that the Sentuo delivery must not be treated as a ceremonial one-day activity.
“This should be the beginning,” he said. “Let me appeal to the Jubilee Partners: this is just the first one. We are waiting for round two, round three, round four and all the rounds forever. It shouldn’t be a one-day activity.”
That statement may prove to be the real test of Ghana’s refining ambition.
The arrival of Jubilee crude at Sentuo is symbolically powerful. But the success of the policy will depend on whether Ghana can guarantee regular crude supply to local refineries, maintain competitive pricing arrangements, enforce high operational and environmental standards, and ensure that local refining produces measurable benefits for consumers, businesses and the wider economy.
For now, the government’s message is direct: Ghana does not want to remain only a producer of raw petroleum resources. It wants to refine, process, create jobs and retain more value at home.
The first Jubilee crude delivery to Sentuo is therefore not only about fuel. It is about whether Ghana can finally turn its oil wealth into deeper industrial capacity.
