Ghana has taken a major step towards strengthening local value addition in its petroleum sector, following the first-ever delivery of crude oil from the Jubilee Field to the Sentuo Oil Refinery for domestic processing.
The milestone, celebrated during the Jubilee Crude Oil Berthing Ceremony at the refinery in Tema, signals a significant shift in Ghana’s long-standing petroleum model, where crude oil is exported while refined fuel products are imported at a higher cost.
Speaking at the event, the Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, described the development as a landmark achievement in Ghana’s industrial transformation agenda and a key component of the government’s economic reset strategy.
“For the first time in Ghana’s history, crude oil from the Jubilee Field has arrived at a Ghanaian refinery for processing,” she said. “This is a defining moment in our journey towards economic self-sufficiency and value addition.”
For years, Ghana’s dependence on imported refined petroleum products has left the economy vulnerable to global fuel price fluctuations, exchange rate pressures and supply chain disruptions. Government officials believe expanding local refining capacity will help retain more value within the country, strengthen energy security and support industrial growth.
Mrs Ofosu-Adjare noted that Sentuo Oil Refinery’s operations would create opportunities across multiple sectors, including transportation, manufacturing, agriculture and infrastructure development, while generating jobs and supporting local businesses.
She also commended the company for investing nearly US$2 billion in Ghana, describing it as one of the most significant industrial investments in recent years.
According to the minister, the refinery forms part of a broader vision to establish an integrated petroleum-based industrial ecosystem that includes petrochemicals, fertiliser production and plastics manufacturing.
“Ghana does not only extract resources; Ghana refines, processes and creates value,” she stated.
The Minister for Energy and Green Transition, John Abdulai Jinapor, described the arrival of Jubilee crude at Sentuo as a historic achievement and evidence of Ghana’s commitment to processing its natural resources locally.
“This achievement goes beyond a commercial transaction,” he said. “It reflects a deliberate national policy to deepen local value addition, strengthen energy security, promote industrialisation and retain a greater share of the benefits from Ghana’s petroleum resources.”
Mr Jinapor argued that exporting crude oil while importing refined products was inconsistent with Ghana’s broader development ambitions.
“True economic transformation requires that we process, refine and add value to our resources locally,” he said. “That is how we create jobs, build technical expertise, strengthen local industries and maximise economic benefits for our people.”
He revealed that Sentuo Oil Refinery was initially designed to process 100,000 barrels of crude oil per day, with the first phase currently handling about 40,000 barrels daily. The second phase is expected to increase total capacity to the full 100,000 barrels per day.
The Energy Minister further disclosed that the Tema Oil Refinery had recently received one million barrels of crude oil for processing, indicating that government’s local refining agenda extends beyond a single facility.
“If these refineries operate at full capacity, Ghana could move beyond importing petroleum products and potentially become an exporter of refined products,” he said.
Mr Jinapor linked the push for domestic refining to recent geopolitical tensions in the Middle East, which have highlighted the vulnerability of fuel-importing nations to global supply disruptions.
He revealed that government recently held a special Cabinet meeting to assess the potential impact of the conflict and subsequently directed the Ministry of Energy and other stakeholders to explore ways of refining Ghana’s crude locally rather than exporting it in raw form.
To make the Jubilee crude delivery possible, the Ministry worked closely with key industry players, including Sentuo, the Jubilee and Sankofa partners, the National Petroleum Authority, BOST, GNPC, Tullow Ghana, Kosmos Energy, PetroSA and Vitol.
Beyond reducing import dependence, government believes a stronger domestic refining industry could improve fuel supply reliability, conserve foreign exchange, create jobs and support the growth of related industries throughout the petroleum value chain.
The development comes as Ghana seeks to reposition itself from a commodity-exporting economy to a value-added industrial hub in West Africa.
Mrs Ofosu-Adjare disclosed that recent discussions with Chinese investors have generated interest in additional industrial projects, reflecting growing confidence in Ghana’s economic prospects.
She assured investors of government’s commitment to supporting future expansion plans, stressing that projects such as Sentuo would play a crucial role in shaping Ghana’s industrial future.
While the arrival of Jubilee crude at Sentuo represents an important milestone, industry observers say its long-term significance will depend on consistency. Sustained success will require reliable crude supply, efficient refinery operations and measurable economic benefits for businesses and consumers.
Mr Jinapor acknowledged this challenge, urging the Jubilee partners to ensure regular crude deliveries to support the refinery’s operations.
“This should be the beginning,” he said. “We are waiting for round two, round three, round four and all the rounds thereafter. It should not be a one-day activity.”
For now, the first delivery of Jubilee crude to Sentuo Oil Refinery sends a strong signal that Ghana is determined to move beyond exporting raw resources and importing finished products. The next challenge will be translating that ambition into a sustainable industrial strategy that creates jobs, retains value and drives long-term economic growth.
