Information available to CITI FM say government has short listed Standard Chartered Bank and BNP PARIBAS Company to act as transaction advisors for the privatization of the Tema Oil Refinery (TOR). The short listed companies are expected to negotiate with the foreign entities that will express interest in the privatization process and make final recommendations to government.

The bidding process for the valuation of the Tema Oil Refinery (TOR) has been opened by the Finance Ministry and the process is in line with the progressive deregulation plan for the oil sector, which began about three years ago. Government is looking to triple the crude refining capacity of TOR to 145 thousand barrels per day from the current 45 thousand barrels. CITI FM’s enquiries at the Finance Ministry revealed that the Ministry met with some officials of the Bank of Ghana and the transaction advisors last week concerning the bidding process of the Refinery and it is reportedly evident that the tender for expressions of interest has been opened.

The proposed expansion is expected to result in a major recapitalization of the company leading to the sale of a significant equity stake to a strategic investor through an internationally competitive bidding process. Government will soon draw up a shortlist of applicants and select the most suitable based on advice from the transaction advisors.

Meanwhile, there has been intense opposition from some quarters to the selling of the refinery. They contend that fluctuations in world oil prices have shown yet again the dangers of privately-owned petroleum companies. The opposition is confident that if TOR, currently providing around 70 percent of commercial fuel needs in Ghana, is freed from Government control, the impact could be devastating. It will be recalled that two South Korean companies (SK Corporation and Samsung Corporation), approached by government to buy a stake in the refinery, turned down the offer earlier this year.