Tullow Oil has begun selling crude oil produced from Ghana’s Jubilee and Tweneboa, Enyenra and Ntomme (TEN) fields to local refineries, marking a significant step towards strengthening the link between the country’s upstream oil production and domestic refining.
The company says its first local crude sale was completed earlier this year, with a cargo supplied to Sentuo Oil Refinery in Tema.
Tullow’s Chief Financial Officer, Richard Miller, disclosed the development during a meeting with investors, describing the local sale as a significant achievement for Ghana’s oil and gas sector.
According to Mr Miller, the transaction was conducted purely on commercial terms, while he also commended the government for initiatives aimed at improving refinery operations in the country.
He said Sentuo Oil Refinery has increasingly become one of the largest buyers of crude from Tullow and its partners operating in Ghana, reflecting growing demand for locally produced crude from domestic refineries.
The development comes as Tullow plans to lift 14 cargoes of crude in 2026, comprising 11 cargoes from the Jubilee field and three from the TEN fields.
The projected 14 cargoes represent an increase of two cargoes over the company’s initial plan, indicating an upward revision in its crude-lifting outlook for the year.
The increasing supply of Ghanaian crude to local refineries creates an additional commercial outlet for the country’s oil production while strengthening the connection between upstream production and downstream refining.
For Ghana, greater use of locally produced crude by domestic refineries could also support efforts to expand local refining capacity and reduce the country’s reliance on imported refined petroleum products, although the impact on fuel prices will depend on refining costs, international oil prices, taxes, margins and other market factors.
Tullow says the initiative will contribute to the development of Ghana’s domestic petroleum industry by creating a stronger link between crude production and local refining activities.
Story by Ama Frimpomaa