Daniel Nonor
10 July 2009
South Africa's New Alpha Refinery Ghana Ltd has signed a memorandum of understanding with Ghana's government to construct a new $6 billion oil refinery in Accra city, a company executive said on Wednesday Reuters has reported
Executive Chairman Merlyn Julie told the news network that the refinery would initially produce 200000 barrels per day (bpd), with first production seen by 2015.
"We have signed a memorandum of understanding ... We expect the first fuel to be produced in 2014 or 2015," Julie said on the sidelines of an African energy conference.
He added the capacity of the refinery, to be situated on 1000 acres in central Accra, could be expanded to 400000 bpd.
Julie said the costs, initially pegged at $7,6 billion, were now projected at some $6 billion. Globally the economic slowdown and weaker oil prices have eased pressure on the cost of construction materials.
"It will be the largest refinery in west Africa... We are looking at being the gateway for west Africa," Julie said.
Ghana is emerging as a major regional oil and gas player following a spate of giant finds by oil companies. One of these is the Jubilee field being developed by Tullow Oil with an estimated resource potential of up to 1,8 billion barrels.
Julie said no decisions had been taken on partners to help fund the refinery in a global economic downturn, although the company was in discussion with local banks and businessmen.
"We are very confident we will get the backers," he said.
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