The Tema Oil Refinery (TOR) has begun charting a turnaround, according to its Managing Director, Edmund Kombat, who spoke at a capacity-building training for energy reporters organized by Energy Africa in collaboration with the Tema Regional Ghana Journalists Association. The company, Kombat said, inherited a crippling debt of US$650 million as of December 2024 a burden accumulated over years of mismanagement, unpaid crude supplies and reclassified government support.
He further disclosed that some grants initially extended by the Ministry of Finance had been reclassified as debt under the government’s ongoing agreement with the International Monetary Fund (IMF) a development that contributed to the surge in TOR’s liabilities.
Despite the financial burden, he assured that TOR is working to restructure the debt and engage with stakeholders to clear the outstanding obligations.
“So what occasioned it trade debts, sometimes third parties. And then there were also debts that are legacy debts where crude was supplied, it was not paid. There were times that the Ministry of Finance in the past had given some funds to TOR. Some of it for example was grant and then when they entered into the IMF, the IMF asked them to reclassify it as debt. So those things have accumulated to that amount of money. And I think that the last time TOR traded, some of the trade were not hedged and so there was a lot of exposure which led to a lot of debt ballooning but we are here to make sure that that is stopped and it is not repeated again.”
He further discusses the high attrition rate of skilled workers, with many leaving the country for better opportunities. He further highlighted the financial distress in the refinery, including unpaid debts and credit salary arrears and also emphasized the strategic importance of the refinery as a national asset, noting its capacity to ramp up production and storage capabilities. Unknown Speaker mentions the refinery’s significant storage capacity, making it a crucial asset for the country.
By: Bernard Mensah/Planbfmonline.com
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