Business News of Friday, 2 February 2024
Source: www.ghanaweb.live
2024-02-02Sentuo Oil Refinery commissioning promises cost relief for Bulk Oil Distributors
Dr. Patrick Kwaku Ofori
The Chamber of Bulk Oil Distributors is optimistic about the positive impact of the recently commissioned Sentuo Oil Refinery on its members' operational costs.
The Sentuo Oil Refinery, the largest and most modern in West Africa, with a daily capacity of 200,000 barrels, is expected to surpass the domestic demand of 80,000 barrels per day.
A joint venture between
Read full articlethe Ghana National Petroleum Corporation (GNPC) and the Chinese conglomerate Sentuo Group, the refinery is projected to create over 10,000 direct and indirect jobs, generating an annual revenue of $1.2 billion for the government.
Dr. Patrick Kwaku Ofori, Chief Executive of the Chamber of Bulk Oil Distributors, highlighted the refinery's significance on the Joy News Channel's Marketplace program. Members are already benefiting from reduced forex-related risks, purchasing in cedis. Dr. Ofori noted a decrease in demurrages, insurance costs, and freight charges, providing substantial relief for importers.
In an interview on JoyNews, Dr. Ofori pointed out that buyers can now avoid insurance and other freight charges, usually included in suppliers' premiums. He emphasized that the various products obtained from crude oil could help spread out costs, ultimately reducing the impact on individual buyers.
However, Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers Ghana, stressed the importance of reviving the Tema Oil Refinery (TOR) for achieving energy security. He expressed concerns that relying solely on a foreign-owned refinery might compromise petroleum security.
In related developments, Dr. Jumoke Oduwole, Special Adviser to the President of Nigeria on Ease of Doing Business & Investment, anticipated a significant boost in Africa's petrochemical industry with the commissioning of the Dangote Refinery, the continent's largest. She emphasized the potential to alleviate forex pressure for imports, indicating positive prospects for Africa's refining capabilities.
