IES Calls for Enforcement of Ghana’s Domestic Crude Oil Obligation

The Institute of Energy Security (IES) has called for the enforcement of Ghana’s statutory Domestic Market Obligation (DMO) provisions, arguing that the laws governing the allocation of crude oil for domestic consumption have remained largely unenforced for nearly a decade.

The energy policy think tank said the continued failure to implement the provisions under Act 919 (2016) of the Petroleum Exploration and Production Act and its operational L.I. 2359 (2018) has become increasingly concerning, particularly with the Tema Oil Refinery (TOR) now operating at full capacity.

IES urges government to enforce DMO provisions

In a 12-page policy paper released on August 19, the IES said Ghana’s legal framework already provides mechanisms for ensuring that crude oil is made available for domestic refining.

The Institute argued that enforcement of the existing provisions would provide greater certainty for local refineries while strengthening Ghana’s domestic petroleum supply chain.

It therefore called on the Minister of Energy and Green Transition to formally issue the 90-day written notices required under Regulation 32(1).

According to the IES, this would place the feedstock requirements of TOR — and, where applicable, Sentuo — on a recurring calendar-year basis rather than relying on ad hoc crude allocations.

The Institute cited the reported allocation of one million barrels from the Jubilee field as an example of the type of arrangement that should be replaced by a more predictable statutory mechanism.

Call for transparent annual crude requirements

The IES also recommended that the Energy Commission and Ghana National Petroleum Corporation (GNPC) publish the annual domestic supply requirement calculations required under Regulations 32(4) to 32(7).

The calculations, it said, should be broken down on a monthly basis.

Such information would give petroleum contractors and domestic refineries a clearer and more predictable basis for planning crude production, supply and refining operations.

TOR operations heighten urgency

The Institute said enforcement of the DMO provisions has become particularly important as Ghana seeks to strengthen domestic refining capacity.

With TOR operating, ensuring a reliable supply of crude feedstock is critical to maintaining refinery operations and reducing dependence on imported petroleum products.

The IES’s recommendations are therefore aimed at moving Ghana from discretionary or occasional crude allocations towards a clear, predictable and legally enforceable domestic supply system.

The Institute said full implementation of the existing statutory framework would help provide certainty for producers and refiners while supporting Ghana’s broader energy security objectives.