TOR–BOST Agreement Marks New Chapter in Fuel Sector Revamp
Photo Credit: Tema Oil Refinery
24 July 2025
Tema Oil Refinery (TOR) and the Bulk Oil Storage and Transportation Company Limited (BOST) have entered into a strategic Memorandum of Understanding (MoU) designed to accelerate Ghana’s domestic refining revival and reduce dependence on imported petroleum products. The agreement, signed at TOR’s headquarters in Tema, comes amid growing national efforts to reduce dependency on imported refined products and restore domestic refining capacity.
The MoU is geared towards the refinery restart by October 2025—an ambitious timeline that aligns with the Mahama administration’s efforts to localize fuel processing, conserve foreign exchange, and stabilize energy supply chains. Under the agreement, TOR’s dormant refining assets will be paired with BOST’s commercial capabilities and logistics infrastructure to unlock synergies across pipeline systems, tank management, and bulk fuel distribution.
The partnership also addresses longstanding operational inefficiencies and debt reconciliation between the two institutions. TOR, which has faced persistent challenges related to technical downtime, undercapitalization, and a legacy debt stock, will leverage BOST’s national footprint and commercial leverage to reposition itself as a viable refining hub. In return, BOST is expected to benefit from TOR’s engineering capabilities as both firms coordinate planning and execution to meet the October restart target.
The collaboration is expected to reduce Ghana’s refined fuel import bill by as much as $240 million per month once the refinery returns to sustained output. Currently, Ghana’s overreliance on imported refined products has heightened vulnerability to foreign exchange volatility and global oil price swings. The TOR–BOST alignment marks a structural shift aimed at reversing these trends.
Preliminary rehabilitation works have commenced at TOR, supported by technical and operational coordination between both entities. While the MoU outlines a clear framework for cooperation, success will hinge on effective execution and sustained political backing. If realised, this institutional convergence could serve as a blueprint for reindustrialising Ghana’s petroleum ecosystem and restoring public confidence in state-led energy ventures.
