Download - 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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GHANA
-NAT
IONALINSTITUTIONS
INT
HE
ENERGYSECTOR
-T
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
HANA
-NATIONALINSTITUTIONS
IN
THE
ENERGYSECTOR
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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.
GHANA
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INT
HE
ENERGYSECTOR
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OR
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