Invest in Oil Refineries for own security, Africa urged

African countries should build their own oil refineries to avoid serious socio-economic problems in the event of a major crisis in the international oil market, a Ghanaian oil official has advised.

Tema Oil Refinery Limited (TOR) managing director Isaac Osei told reporters in Accra, Ghana that it was important for African nations to set up oil refineries for their own security if a major crisis developed in the international market and that his company was ready to help in the venture.

“Owning a national refinery is not only important for satisfying the local market business but also for national security because if there is a major crisis in the International market and you do not have the capacity as a country to refine internally, then this has adverse socio-economic impact for example, your transport sector will collapse. These are critical issues and that is why a local refinery is important so that it can sustain your economy,” Mr. Osei said.

Speaking to local and Zambian reporters on Monday in Accra, Mr Osei noted that while establishing refineries was an expensive venture, it was necessary to avert inevitable eventualities in the petroleum sector from adversely affecting African countries.

“We have the capacity to satisfy our local market for fuel supply in Africa but we need more investment in refineries to meet the demand and foster national commodity security,” Mr Osei said.

He said while Africa might not have considered investments in refineries in the past, it was increasingly becoming an important component in the sector which authorities needed to embrace by making requisite investments if the continent was to become selfreliant.

Meanwhile, Mr. Osei paid tribute to Sahara Energy, a company which had made a notable mark on the African continent in the energy sector.

He said TOR and Sahara Energy, which he described as an indigenous firm, had continued to experience a seamless and cordial trading relationship since the two entities sealed trade deals more than 20 years ago, adding that Sahara had proved to be a reliable partner in business.

He said TOR was not hesitant to engage Sahara when bids to start supplying Tema Oil Refinery with crude oil were made due to high recommendation from its country of origin, Nigeria, about its reputation, technical expertise, and investment muscle, adding that for over two decades, Sahara Energy had proved to be an investment partner of all seasons and had never disappointed.

“Sahara has been part of TOR for more than 20 years. Since the early days of Sahara’s inception, they (Sahara Energy) have worked very well with TOR. It is a very strong company and the only African entity for example which owns LPG vessels for its LPG supplies.

“When they came to us, they were highly recommended by their country and so, it is definitely a preferred company for us. They also provide us with technical support in other areas. For us, they have been a good company to work with,” he added.