Ghana's industrial transformation agenda received a major boost yesterday when the Petroleum Hub Development Corporation (PHDC) signed a landmark $28 billion Build-Own-Operate (BOO) agreement with a Korea-Emirati-Mali consortium for the second phase of the Ghana Petroleum and Petrochemicals Hub.
The Investment and Land Development Agreement signed in Accra will see the consortium, led by Global Sphere, develop, within five years, a world-class refinery with a capacity of 300,000 barrels per stream day.
They will also construct two petrochemical plants, four million cubic metres of storage infrastructure, and a multi-berth jetty, all at Jomoro in the Western Region.
Construction activities at the project site are expected to commence in the first quarter of next year, barring any technical hitches.
The signing ceremony was attended by the Minister of Lands and Natural Resources and Member of Parliament (MP) for Ellembelle, Emmanuel Armah-Kofi Buah; the Deputy Minister of Transport and MP for Jomoro, Dorcas Affo-Toffey; the Western Regional Minister, Joseph Nelson; the President of the Western Regional House of Chiefs, Nana Kobina Nketsiah V; and the Paramount Chief of the Western Nzema Traditional Area, Awulae Kwasi Amarhchi III, among other dignitaries.
Value addition
At the ceremony, the Minister of Energy and Green Transition, Dr John Abdulai Jinapor, underscored the government's commitment to value addition in the petroleum sector.
He stated that after five years of continuous decline, oil production was now picking up, citing the signing of a $1.5 billion framework agreement with ENI and a $2 billion agreement with Jubilee Partners, as well as ongoing drilling campaigns in deep waters.
"But the vision of the President is simple. We cannot increase oil production without adding value to that oil resource. And that is why the Petroleum Hub represents a very, very key element in the whole value chain," Dr Jinapor said.
The Energy Minister described the 300,000bpd refinery capacity as enormous, saying even with the country's current capacity held by two refineries and the phase two expansion engagements, Ghana would not be able to process that volume.
"So to process 300,000 barrels would mean that you are not just feeding Ghana, that you are satisfying the rest of the sub-region," he said.
The minister gave an assurance of the government's full support to ensure the project succeeds.
Dr Jinapor also pledged to support the project to ensure that the government met its side of the bargain, saying he would work with the relevant ministers to make the project a reality.
Consortium's commitment
A representative of the investment consortium, Boubacar Belco Bah, said the signing of the Investment and Land Development Agreement represented more than a contractual achievement.
"It marks a new chapter of cooperation, industrial ambition and shared responsibility. Today, we are laying the foundation for an industrial transformation with the potential to benefit Ghana, strengthen West Africa, and create opportunities for generations to come," he said.
Mr Bah said for too long African economies had exported valuable resources while importing products that could be developed through greater industrial capacity, adding that the Petroleum Hub offered an opportunity to change that reality.
Mr Bah indicated that the Global Sphere-led consortium and its development partners were advancing investment mobilisation and financial structuring for Phase II, including strategic equity participation, long-term debt financing, and appropriate credit enhancement and risk-mitigation arrangements.
He, however, stressed that the signing was not the completion of the financing process but a significant step towards it.
"Ultimately, our success will be measured not by the agreement we sign today, but by the commitments we honour and the results we achieve together," Mr Bah stressed.
He also highlighted the project's potential contribution to the government's 24-Hour Economy and Accelerated Export Development agenda, as well as to the development of Jomoro and its surrounding communities, pledging that the people of the area would benefit through local employment, vocational and technical training, supplier development and participation by Ghanaian enterprises in the project's value chain.
580 Days of work
The Chief Executive Officer of PHDC, Dr Toni Aubynn, in his remarks, said yesterday marked exactly 580 days since he assumed office, describing the journey as one of preparation, resolve and determination.
"None of us had built a petroleum hub before. However, given the depth of professional expertise within the staff, we set out to match the realisation of this project's vision with preparation, an unflinching resolve to attract investors, and the determination to get this project off the ground," he said.
Dr Aubynn said 2026 was declared the Year of Action, adding that the groundwork had been laid and the partnerships were within reach.
"It is with great pride that I formally announce this landmark $28 billion Build-Own-Operate partnership with our distinguished Korea-Emirati-Mali consortium, led by Global Sphere," he said.
He paid tribute to President John Dramani Mahama for his personal commitment to the project, following what he described as a pivotal meeting in November last year, as well as to the Sector Minister, his Deputy, Richard Gyan-Mensah, and other stakeholders.
The PHDC boss said the real measure of success would be the infrastructure built, the investments delivered, the jobs created, and the lasting value left for the people of Ghana.
"Today, we celebrate.
Tomorrow, we return to work, united in purpose and determined to turn this commitment into reality," he added.
