Accra, Ghana – The management of Tema Oil Refinery (TOR) has disclosed that the company’s total debt stock escalated to $517 million as of December 2024, attributing the substantial figure to a combination of operational liabilities and adjustments mandated by the government’s agreement with the International Monetary Fund (IMF).
Speaking to journalists after a session with Parliament’s Energy Committee, TOR’s Acting Managing Director, Edmund Kombat, explained that a significant portion of this debt originates from historical trade obligations and unpaid crude oil supplies accumulated over several years. He further revealed that certain funds previously extended to TOR by the Ministry of Finance, which were initially classified as grants, have since been reclassified as debt under the ongoing IMF agreement, contributing to the surge in the refinery’s total liabilities. Kombat also noted that past unhedged trades had led to considerable financial exposure and “debt ballooning.”
Despite this significant financial burden, Kombat assured the public that TOR is actively working to restructure its debt and is engaging with various stakeholders to clear the outstanding obligations. He indicated that a public communication detailing the verified and authenticated reduction in debt would be made available.
This revelation comes as TOR embarks on renewed efforts to restore its operations, with management previously announcing an expected resumption of full operations by October 2025, following an extended shutdown due to a lack of crude oil. TOR has also initiated steps to revive key production infrastructure, including the Crude Distillation Unit (CDU) and the Residue Fluid Catalytic Cracker (RFCC), a move management hopes will substantially reduce Ghana’s reliance on imported refined petroleum products.
Culled from CNR
