IMF Visits Tema Oil Refinery as TOR Reveals US$517 Million Debt Burden

A delegation from the International Monetary Fund (IMF) has visited the Tema Oil Refinery (TOR) to examine its operations, review ongoing rehabilitation projects and assess management’s efforts to restore the facility’s operational efficiency and financial sustainability.

The visit formed part of the IMF team’s engagements with government institutions and selected state-owned enterprises in Ghana to gain a better understanding of their operational activities, financial positions, challenges and contributions to the national economy.

The delegation was led by the IMF’s Ghana Resident Representative, Dr. Adrian Alter, while the TOR team was headed by its Managing Director, Edmond Kombat, Esq.

During discussions with the visiting team, Kombat outlined the operational and financial difficulties inherited by the current management and highlighted measures introduced since May 2025 to rebuild confidence in the refinery and rehabilitate its major processing facilities.

He explained that management had relied on internally generated revenue to finance the refinery’s activities since taking office, without receiving direct financial support from the government.

According to him, the administration has focused on strengthening financial discipline, improving operational efficiency and rehabilitating essential infrastructure to put the refinery on a more sustainable footing.

Kombat also disclosed that discussions were ongoing with the government over TOR’s outstanding financial obligations, with both sides exploring options for debt restructuring and reconciling historical liabilities between the refinery and the state.

He revealed that the current management inherited a debt burden of approximately US$517 million, including about US$120 million owed to the government.

The refinery is also engaging other state institutions to resolve outstanding financial obligations.

Management is considering netting-off arrangements to reconcile mutual debts and determine the actual financial positions of the parties involved.

On the company’s financial performance, Kombat indicated that TOR recorded a profit in the previous year and expressed optimism about sustaining that performance in the current year and beyond.

He attributed the improved outlook partly to greater macroeconomic stability and management’s ongoing efforts to strengthen the refinery’s financial position and operational capacity.

As part of its long-term financing strategy, management is considering listing TOR on the Ghana Stock Exchange to attract investment and raise additional capital for rehabilitation, operations and future expansion.

Kombat explained that a potential stock market listing could allow Ghanaian institutions and other investors to acquire shares in the refinery, creating another source of funding to support its recovery and development.

The IMF delegation also sought information on the volume of crude oil processed by TOR, particularly the proportion sourced from Ghana’s domestic oil fields.

In response, Kombat disclosed that the refinery had processed approximately five million barrels of crude oil, of which about two million barrels came from Ghanaian fields, with the remainder sourced externally.

He identified the Jubilee field as the source of TOR’s first domestic crude oil supply, which was obtained through a transaction involving Vitol and fully paid for.

He also acknowledged the Ghana National Petroleum Corporation (GNPC) for supplying its portion of the country’s crude oil allocation to the refinery.

Kombat further indicated that 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 oil allocation available to TOR for refining by the following year.

Such an arrangement, he noted, could improve the refinery’s access to feedstock and support more consistent operations.

The discussions also examined the potential impact of TOR’s return to operations on Ghana’s economy and petroleum consumers.

Kombat highlighted the refinery’s role in supporting domestic petroleum product availability, promoting price stability and strengthening the country’s resilience against disruptions in international oil markets.

He explained that refining crude oil locally could reduce Ghana’s dependence on external supply chains and limit its exposure to international supply shocks, particularly during periods of geopolitical uncertainty, including the ongoing conflict in the Middle East.

He also acknowledged government measures aimed at protecting consumers from the effects of fluctuations in petroleum prices, stressing the importance of maintaining a dependable domestic supply of petroleum products.

Drawing attention to TOR’s commercial assets, Kombat highlighted its tank farm, storage facilities and product distribution network as additional sources of revenue.

He disclosed that the refinery has approximately one million metric tonnes of storage capacity, which he said is three times that of the Bulk Oil Storage and Transportation Company (BOST).

TOR is also connected to eight privately operated depots, allowing it to pump petroleum products directly to those facilities.

According to management, these arrangements create opportunities to generate additional revenue, alongside other services such as laboratory testing of petroleum products.

Corporate governance and financial accountability were also key areas of discussion, particularly efforts to address a six-year backlog of unaudited accounts.

Kombat explained that the Ghana Audit Service had undertaken the exercise to clear the outstanding audit backlog.

Management also plans to appoint an external audit firm at the refinery’s next Annual General Meeting to conduct subsequent audits. KPMG has previously undertaken audit assignments for the company.

The managing director further outlined improvements in financial reporting, internal controls and staff-related reforms, alongside measures designed to secure a more reliable supply of crude oil for continued operations.

He said the initiatives form part of a broader strategy to strengthen accountability, improve financial management and enhance operational efficiency across the refinery.

The IMF delegation was also briefed on ongoing efforts to increase processing capacity, rehabilitate other critical units and restore facilities required for more reliable operations.

These projects are intended to improve TOR’s contribution to Ghana’s energy security, strengthen its financial sustainability and enhance its role in the country’s petroleum industry.

Following the meeting, the delegation toured sections of the refinery to inspect rehabilitated facilities and observe engineering works currently underway.

The tour offered the visiting team an opportunity to assess the refinery’s operational environment, examine progress made under the current management and identify work that remains outstanding.

Members of the delegation expressed appreciation for the engagement and the opportunity to gain a deeper understanding of TOR’s operations and recovery plans.

Source: https://www.citinewsroom.com/2026/10/imf-delegation-visits-tor-to-assess-rehabilitation-financial-recovery-efforts/

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