The Tema Oil Refinery (TOR) is currently saddled with a debt of $517 million, the Managing Director, Edmond Kombat, has revealed.
Kombat said the refinery’s debt position has worsened in recent years, rising from about $350 million when the previous New Patriotic Party (NPP) administration assumed office to the present figure, due to the absence of sustained debt repayment.
He explained that the accumulated liabilities include amounts owed to the Ghana Revenue Authority (GRA), the Staff Provident Fund, SSNIT penalties, the Electricity Company of Ghana (ECG), Ghana Water Company Limited, and the Government of Ghana.
He added that crude oil procured during the period also contributed an additional $40 million to TOR’s financial burden.
“There were times the refinery could not pay staff salaries and had to borrow to meet monthly obligations. The distress within the plant was quite severe,” he said.
Kombat made the disclosure at an energy sector reporting workshop in Tema, organised by Energy News Africa in partnership with the Tema Regional Branch of the Ghana Journalists Association (GJA).
The workshop focused on “Leveraging Social Media and AI for Accurate and Effective Energy Reporting: Trends, Tools, and Best Practice.”
Reflecting on TOR’s past debt challenges, the Managing Director said that during his tenure as Deputy MD in President John Dramani Mahama’s first administration, the refinery’s debt profile had reached $650 million. This, he noted, resulted mainly from trade debts and high-interest contracts.
To address the crisis, he said the government introduced the Energy Sector Levies Act (ESLA) in 2015, which included a TOR Debt Recovery levy. Under this arrangement, a bond was issued and approximately $300 million of the $650 million owed to four major banks was paid off.
Kombat indicated that the refinery subsequently returned to operational status, refining about seven million barrels of crude oil, including crude from Ghana’s TEN Field before the administration left office.
This, he said, demonstrated TOR’s capacity to process Ghanaian crude, contrary to earlier public claims.
He noted that the initial plan was for TOR to retain a portion of ESLA receivables to clear the remaining debt within three years, targeting a full settlement by 2019.
“However, a change of government came with a change in priorities, and ESLA PLC was established, shifting the original vision,” he said.
The MD also highlighted high staff attrition, explaining that many skilled workers left for opportunities in the Middle East and the Dangote Refinery as they saw limited prospects at TOR.
He added that beyond the financial challenges, staff morale had declined due to lack of promotion.
He therefore requested affected workers to submit petitions, and after reviewing 300 submissions, 250 deserving staff were promoted.
