President Mahama Commissions Sentuo Refinery Phase II Expansion and Announces Onshore Drilling in Voltaian Basin

President John Dramani Mahama has officially performed the sod-cutting ceremony for the Phase II expansion of the Sentuo Oil Refinery in Tema, a move set to transform Ghana's energy landscape. This major industrial milestone will see the privately-owned refinery increase its processing capacity from 40,000 to 100,000 barrels per day. The expansion, supported by China’s Belt and Road Initiative, is a central pillar of the government's strategy to achieve energy independence and position Ghana as a premier refining hub within the West African sub-region. The refinery has already established itself as a critical infrastructure piece, providing essential products such as diesel and LPG while fostering local economic growth through substantial private investment.

The Minister for Energy and Green Transition, John Abdulai Jinapor, highlighted that the expansion will significantly bolster national energy security and create approximately 700 new jobs, bringing the total workforce at the facility to 1,500. Beyond direct employment, the project is expected to stabilize domestic fuel prices and reduce the country's reliance on imported petroleum products. In a related development, President Mahama also announced that the Tema Oil Refinery (TOR) has resumed crude oil processing after completing its first major turnaround maintenance in four years. TOR is expected to reach full operational capacity by July, at which point it will begin processing Ghana’s own crude oil, further strengthening the domestic value chain.

Complementing the downstream expansion, the government has announced a strategic shift in upstream activities with plans for onshore oil exploration. EXPLORCO, the exploration subsidiary of the Ghana National Petroleum Corporation (GNPC), is scheduled to begin drilling in the Voltaian Basin before the end of 2026. This initiative aims to diversify Ghana's hydrocarbon resources beyond existing offshore fields and evaluate the commercial viability of inland deposits. Minister for Trade Elizabeth Ofosu-Adjare noted that the synergy between increased refining capacity and new oil discoveries is already attracting international interest from investors in Morocco, China, and the UK, particularly in the petrochemical, fertilizer, and plastics manufacturing sectors.

These integrated developments signal a broader economic transition from a reliance on raw material exports to a focus on industrial production and value addition. By enhancing local refining capabilities and exploring new frontiers like the Voltaian Basin, Ghana aims to insulate its economy from the volatility of global oil markets and maximize the benefits of its natural resources. The collaboration between the government and the Sentuo Group underscores a commitment to sustainable industrialization, job creation, and the long-term goal of making Ghana a self-sufficient energy powerhouse under the African Continental Free Trade Area (AfCFTA).