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By: Samuel Asamoah
The Tema Oil Refinery (TOR) is pursuing debt restructuring, operational rehabilitation and a potential listing on the Ghana Stock Exchange as part of efforts to restore its financial sustainability and attract fresh investment.
The initiatives were outlined by TOR Managing Director, Mr Edmond Kombat, Esq., during a visit by a delegation from the International Monetary Fund (IMF), led by its Ghana Resident Representative, Dr Adrian Alter, to assess the refinery’s operations, rehabilitation progress and financial position.
Mr Kombat disclosed that the refinery inherited a debt burden of approximately US$517 million, including about US$120 million owed to the government.
He said management was engaging the government to restructure the outstanding obligations while working with other state institutions to reconcile mutual debts and explore possible netting-off arrangements.
The proposed measures are expected to help establish the refinery’s actual financial position and provide a clearer basis for its recovery strategy.
Management relies on internally generated funds
Mr Kombat said the current management, which assumed office in May 2025, had relied on internally generated funds to sustain operations and support rehabilitation efforts without direct financial support from the government.
“Since this new management took over, we have not received a dime from government. Every single thing is done through our internally generated funds,” he said.
He explained that management had prioritised financial discipline, improvements in operational efficiency and the rehabilitation of critical processing facilities to restore confidence in the refinery and position it for long-term sustainability.
Mr Kombat also disclosed that TOR recorded a profit in the previous year and expressed optimism that the company could sustain the performance in the current and subsequent years.
He attributed the positive outlook partly to improved macroeconomic conditions and management’s efforts to strengthen the refinery’s operational and financial position.
TOR considers Ghana Stock Exchange listing
As part of its long-term financing strategy, management is considering a potential listing of TOR on the Ghana Stock Exchange to attract investment and raise additional capital for rehabilitation, operations and expansion.
According to Mr Kombat, a listing could create opportunities for Ghanaian institutions and other investors to acquire shares in the refinery, providing an alternative source of funding for its recovery.
However, the proposal remains under consideration, with no specific timeline or listing details disclosed during the engagement.
Domestic crude supply key to refinery recovery
The availability of crude oil emerged as another major issue during the discussions, with the IMF delegation seeking information on the volume of crude processed by TOR and the proportion sourced from Ghana’s oil fields.
Mr Kombat said the refinery had processed approximately five million barrels of crude oil, including about two million barrels sourced from domestic fields, with the remainder coming from external sources.
He said TOR’s first domestic crude supply came from the Jubilee field through a transaction with Vitol, which was fully paid for. The Ghana National Petroleum Corporation (GNPC) had also supplied its share of the country’s crude allocation to the refinery.
“Our first domestic crude came from the Jubilee field through Vitol, and it was fully paid for. GNPC also gave us its portion of Ghana’s allocation,” he stated.
The managing director said Ghana produced approximately 38 million barrels of crude oil annually, with about 11 million barrels representing the government’s share.
He expressed hope that GNPC would make its full crude allocation available to TOR for refining by 2027, a move he said could improve feedstock availability and support more consistent operations.
Reliable crude supply remains important to the refinery’s recovery because sustained processing requires adequate feedstock to keep critical facilities operating and generate revenue.
Storage infrastructure offers additional revenue opportunities
Mr Kombat also highlighted TOR’s storage facilities, product distribution network and related commercial services as potential sources of additional revenue.
He said the refinery had approximately one million metric tonnes of storage capacity, which he described as three times the capacity of the Bulk Oil Storage and Transportation Company (BOST).
He added that TOR was connected to eight privately operated depots, enabling it to pump petroleum products directly to those facilities.
The refinery also provides laboratory services for petroleum product testing, offering another avenue for commercial activity beyond its core refining operations.
Mr Kombat said the refinery’s infrastructure and distribution connections could strengthen its commercial position as management works to improve revenue generation and operational efficiency.
Governance and audit backlog
The IMF delegation was also briefed on corporate governance, financial accountability and efforts to address a six-year backlog of unaudited accounts.
Mr Kombat said the Ghana Audit Service had undertaken the audit exercise to clear the outstanding backlog.
Management intends to appoint an external audit firm at the refinery’s next Annual General Meeting to undertake subsequent audits. KPMG had previously conducted audit assignments for the company.
He said improvements in financial reporting, internal controls and staff-related reforms formed part of a broader effort to strengthen accountability and restore confidence in the refinery’s management.
The discussions also covered plans to increase processing capacity, rehabilitate critical units and restore facilities required to support more reliable operations.
Domestic refining and energy security
On the wider economic implications of TOR’s operations, Mr Kombat said domestic refining could improve petroleum product availability, contribute to price stability and reduce Ghana’s exposure to disruptions in international oil markets.
He pointed to geopolitical tensions, including the conflict in the Middle East, as examples of external developments that could affect global petroleum supply and prices.
A refinery capable of operating consistently could provide an additional source of domestically processed petroleum products and strengthen Ghana’s resilience to external supply shocks.
The managing director also acknowledged government interventions aimed at cushioning consumers against changes in petroleum prices.
The IMF delegation subsequently toured parts of the refinery to observe rehabilitated facilities and ongoing engineering works.
The visit provided the delegation with an opportunity to assess the progress of TOR’s recovery efforts and understand the operational and financial challenges confronting management.
TOR remains Ghana’s principal oil refinery, with its recovery expected to have implications for domestic petroleum processing, energy security and the country’s broader petroleum value chain.
