Accra, Nov. 22, GNA - Government has signed a Memorandum of Understanding with three strategic foreign investors for the establishment of an Export Oriented Refineries in the country.

The establishment of the refineries would break the Tema Oil Refinery's (TOR) monopoly in the country and encourage the processing and exportation of petroleum products to other countries.

By law however, it would be required that at least 30 percent of total production were meant for the Ghanaian market.

Mr Appeagyei Gyamfi, Director of Petroleum at the Ministry of Energy who told the Ghana News Agency last Tuesday during a visit by European Union Ambassadors in the country said various sites have already been acquired for the investors in the Western and Central Regions.

He named the three companies as: Arabian Gulf Oil Limited (AGOL), Eldago International Limited, from Croatia, and Lady D. Choice Company from the United States of America.

Mr Gyamfi said each company was expected to generate about 200,000 barrels of petroleum products per day.

AGOL, to be stationed in Takoradi Western Region, he said, had started working on the design and would commence designation of marine facilities soon before moving into actual construction of the refinery. The other two are still finalising their arrangements.

Mr Gyamfi said the arrival would inject competition into the oil business in the country and enable TOR to be efficient and better placed in the industry.

Meanwhile, government's plan to privatise TOR was still on course. Mr Joseph Adda, Minister of Energy, during a tour to TOR with the EU Ambassadors hinted that the idea to privatise the company formed part of government's policy to reform the energy sector in the country. He said it would place TOR at the level where it would effectively compete with the other refineries.

Mr Adda said even though no concrete decision had been taken on the form of share participation in TOR, government was going to ease itself and allow the private sector to take over.

The EU Ambassadors led by Mr Peter Linder from Germany, visited the Energy Ministry, the TOR and the VRA at Akosombo to be abreast be with their operations.