West African petroleum production and refining efforts

West African nations, particularly Ghana and Nigeria, are working to strengthen energy security through petroleum refining and increased production. In Ghana and Nigeria, efforts to expand domestic refining capacity aim to reduce vulnerability to international market disruptions. However, stakeholders in Nigeria have warned that high feedstock costs and inadequate crude production could undermine downstream expansion, leading to proposals for a ‘naira-for-crude’ policy.

In Ghana, oil production has reportedly increased by approximately 30% following a five-year decline. This turnaround is linked to renewed investment, including a $2 billion memorandum of understanding with Kosmos Energy to expand drilling in the Jubilee field. To further attract capital and reverse previous production drops, the Ghanaian government has proposed fiscal reforms, such as extending contract terms and reducing the Ghana National Petroleum Corporation’s initial free equity stake. Additionally, discussions have occurred regarding a potential return to the country by ExxonMobil.

Ghana’s refining sector has seen significant developments at the Tema Oil Refinery (TOR). After a decade of losses, TOR reported a pre-tax profit of GH¢1.24 billion for 2025, credited to improved commercial operations and infrastructure rehabilitation, such as the restart of the Crude Distillation Unit. Managing Director Edmond Kombat attributed the turnaround to tighter financial controls and prudent management since taking office in May 2025.

TOR is currently addressing an inherited debt of approximately US$517 million and is considering a potential listing on the Ghana Stock Exchange. The refinery aims to increase capacity to 200,000 barrels by 2028, a move that has already contributed to an increase in petroleum product movement through Ghana to Burkina Faso, with such movements rising from 15% in 2024 to 40% currently.