By Nadia Ntiamoah
The Tema Oil Refinery (TOR) has disclosed that it inherited approximately US$517 million in debt, including about US$120 million owed to the government, as a delegation from the International Monetary Fund (IMF) visited the facility to assess its operational recovery, rehabilitation works and financial sustainability.
During the visit on October 24, 2026, TOR Managing Director Edmond Kombat told the IMF delegation that management had been relying on internally generated funds to sustain the refinery’s operations since assuming office in May 2025.
“Since this new management took over, we have not received a dime from government. Every single thing is done through our internally generated funds,” Kombat said.
The delegation, led by the IMF’s Ghana Resident Representative, Dr. Adrian Alter, met with TOR management to discuss the refinery’s operational challenges, financial position, ongoing rehabilitation works and contribution to Ghana’s energy sector.
The engagement formed part of the Fund’s broader consultations with government authorities and selected state-owned enterprises to understand their financial obligations, operational difficulties and role in the national economy.
According to Kombat, the current management has prioritised financial discipline, improvements in operational efficiency and the rehabilitation of critical processing facilities as part of efforts to restore the refinery to sustained operations.
TOR Negotiates Debt Restructuring With Government
Kombat disclosed that management was engaging the government over outstanding financial obligations, with discussions focusing on debt restructuring and the reconciliation of historical commitments between the refinery and the state.
Of the approximately US$517 million in inherited debt, about US$120 million is owed to the government, he said.
“We are trying to restructure our debt with government,” he explained.
The refinery is also engaging other state institutions over outstanding obligations, with management exploring possible netting-off arrangements to determine the actual financial positions of the parties involved.
Such arrangements could help reconcile mutual debts and claims, although the details and outcomes of the discussions were not disclosed.
The debt burden remains a significant issue for the refinery as it seeks to rehabilitate its facilities, improve cash flow and establish a sustainable financial footing.
Despite these challenges, Kombat said TOR recorded a profit in the previous year and expressed optimism that the company could remain profitable 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 performance.
Ghana Stock Exchange Listing
As part of its long-term recovery strategy, management is considering a possible listing of the Tema Oil Refinery on the Ghana Stock Exchange to attract investment and raise additional capital.
Kombat explained that a listing could allow Ghanaian institutions and other investors to acquire shares in the company, creating another avenue for financing its operations, rehabilitation and future expansion.
The proposal would represent a potential shift towards broader investor participation in the refinery, although management has not announced a definitive timetable or confirmed that a listing decision has been made.
The proposed move comes as TOR seeks to balance its inherited liabilities with the substantial investment required to restore and maintain its processing infrastructure.
Five Million Barrels of Crude Processed
The IMF delegation also sought information about the volume of crude oil processed by TOR, particularly supplies obtained from Ghana’s domestic oil fields.
Kombat disclosed that the refinery had processed approximately five million barrels of crude oil, including about two million barrels sourced from Ghanaian fields, with the remainder coming from external sources.
He said the refinery’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) also supplied its share of Ghana’s crude allocation to TOR.
“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.
According to the managing director, Ghana produces approximately 38 million barrels of crude oil annually, with around 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 believes could improve feedstock availability and support more consistent operations.
Reliable access to crude oil is central to the refinery’s recovery, as the availability and cost of feedstock directly influence processing levels, production planning and commercial performance.
Management Highlights Role in Energy Security
During the discussions, Kombat outlined the potential benefits of domestic refining for petroleum product availability, price stability and Ghana’s ability to withstand disruptions in international markets.
He argued that a functioning domestic refinery could reduce the country’s exposure to external supply shocks, particularly during periods of geopolitical tension and uncertainty in global oil markets, including the conflict in the Middle East.
He also acknowledged government interventions aimed at cushioning consumers against fluctuations in petroleum prices, highlighting the importance of maintaining reliable supplies.
The refinery’s contribution to energy security, however, depends on its ability to sustain operations, secure adequate crude supplies and maintain the facilities needed to process petroleum products efficiently.
The IMF team was briefed on management’s efforts to rehabilitate critical processing units, restore essential infrastructure and increase the refinery’s operational capacity.
TOR Points to Storage and Distribution Potential
Beyond refining, management highlighted the commercial opportunities presented by TOR’s storage facilities, tank farm and petroleum distribution network.
Kombat said the refinery has 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 further disclosed that TOR is connected to eight privately operated depots, allowing petroleum products to be pumped directly to those facilities.
According to management, these connections offer additional opportunities to generate revenue beyond refining activities.
The refinery also provides laboratory services for petroleum product testing, another area identified as having commercial potential.
Management believes that maximising revenue from storage, distribution and related services could support the refinery’s financial recovery while it continues rehabilitating its core processing operations.
Six-Year Audit Backlog Under Review
Corporate governance and financial accountability also featured prominently during the engagement, particularly the refinery’s outstanding financial statements.
Kombat told the delegation that the Ghana Audit Service had undertaken work to address a backlog of six years of unaudited accounts.
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 TOR.
The audit process forms part of broader efforts to improve financial reporting, strengthen internal controls and enhance accountability.
Kombat also briefed the IMF delegation on staff-related reforms, measures to sustain crude supplies and other initiatives intended to improve operational efficiency.
Clearing the audit backlog and establishing regular independent audits would be important steps in providing a clearer picture of the refinery’s financial position and strengthening confidence among stakeholders and potential investors.
IMF Delegation Tours Rehabilitation Works
Following the discussions, the delegation toured parts of the refinery to inspect rehabilitated facilities and ongoing engineering works.
The visit provided the IMF team with an opportunity to observe the refinery’s operational environment and assess the progress management says has been made since May 2025.
Members of the delegation expressed appreciation for the engagement and the opportunity to gain a better understanding of TOR’s operations and recovery plans.
