The management of Tema Oil Refinery (TOR) has revealed that the company’s total debt stock has reached a staggering $517 million as of December 2024.
According to TOR’s Acting Managing Director, Edmund Kombat, the debt is attributed to a combination of operational liabilities and government accounting adjustments.
Speaking to journalists after an appearance before Parliament’s Energy Committee, Kombat explained that a significant portion of the debt stemmed from trade obligations and unpaid crude oil supplies over the years. He also 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), contributing to the surge in TOR’s liabilities.
Despite the financial burden, Kombat assured that TOR is working to restructure the debt and engage with stakeholders to clear the outstanding obligations. “We are doing that verification, and as I mentioned, once we do that verification and authentication of what we have been able to bring down, that will be communicated publicly,” he said.
The revelation comes amid renewed efforts to restore TOR’s operations. Management has announced that the refinery is expected to resume full operations by October 2025, following a lengthy shutdown due to lack of crude. TOR has also initiated steps to revive its key production infrastructure, including the Crude Distillation Unit (CDU) and the Residue Fluid Catalytic Cracker (RFCC), with the aim of significantly reducing Ghana’s reliance on imported refined petroleum products.
With a clear plan in place to address its debt and restore operations, TOR is poised to play a more significant role in Ghana’s energy sector. The company’s revival is expected to have a positive impact on the economy, and its management is working tirelessly to ensure a successful turnaround.
Source: Apexnewsgh.com/Ngamegbulam Chidozie Stephen
