Mahama Unveils $2bn Jubilee Investment, Signals Stronger Role for Tema Oil Refinery
President John Dramani Mahama has announced a major $2 billion investment agreement to expand gas production at the Jubilee Field, while placing renewed emphasis on revitalizing the Tema Oil Refinery (TOR) as a key pillar in Ghana’s energy value chain.
The investment, formalized through a Memorandum of Understanding, will see the drilling of nearly 30 new wells to significantly increase gas output and support the country’s transition to a gas-powered energy mix. According to the President, the move forms part of a broader energy security strategy aimed at reducing Ghana’s dependence on volatile global liquid fuel markets.
He was speaking during a high-level engagement with Civil Society Organizations (CSOs) at the Jubilee House in Accra.
While highlighting upstream expansion, President Mahama underscored the critical importance of strengthening downstream infrastructure, particularly TOR, to maximise value from increased domestic production. He noted that the refinery has resumed processing crude oil, marking a significant step toward integrating Ghana’s petroleum supply chain and reducing reliance on imported refined products.
The President expressed concern over past inefficiencies in crude management but indicated that ongoing reforms and operational improvements at TOR are positioning it as a strategic asset capable of stabilising fuel supply and pricing in the domestic market.
“With increased gas production and a revitalised refinery, Ghana can significantly reduce the cost of finished petroleum products while strengthening energy security,” he noted.
To support rising gas volumes from the Jubilee Field, government plans are also underway to construct a second gas processing train, as existing infrastructure approaches capacity. This will be complemented by an additional $1.5 billion investment by ENI in the Offshore Cape Three Points (OCTP) project.
Beyond domestic reforms, the government is exploring regional partnerships to enhance supply resilience. President Mahama hinted at a potential arrangement with the Dangote Refinery to secure petroleum products at competitive rates, further strengthening Ghana’s downstream sector.
The combined investments are expected to reduce foreign exchange pressures, lower energy costs for businesses, and position Ghana as a net exporter of electricity to neighbouring countries.
Industry observers say the renewed focus on TOR, alongside increased upstream production, signals a more integrated approach to energy sector development—one that prioritises value addition, cost efficiency, and long-term sustainability.