Restoring BDC confidence helped turn around TOR – MD

Edmund Kombat, the Managing Director of the Tema Oil Refinery (TOR), highlighted the crucial role that rebuilding trust with Bulk Distribution Companies (BDCs) played in the refinery's turnaround. Kombat explained that the refinery had faced significant challenges due to widespread mistrust in its storage and transfer systems. When he assumed his role, many BDCs had stopped storing petroleum products at TOR due to concerns about receiving their full quantities, which led to a decline in revenue and operational capacity.

Kombat's strategy involved directly engaging with BDCs, Oil Marketing Companies (OMCs), and companies from neighboring countries, assuring them that their products would be fully accounted for. This reassurance proved successful as the first BDCs that returned to TOR received their products in full, which helped to rebuild confidence in the facility.

The return of BDCs not only restored trust but also created a surge in demand for storage space, providing TOR with a vital new source of revenue through storage charges, product transfers, and rack operations.

The additional revenue generated from BDCs was strategically used to address TOR's pressing operational challenges. Funds were allocated to maintain the Crude Distillation Unit (CDU) and settle outstanding obligations to former employees. Kombat emphasized that the refinery's management also ensured that retired staff who were owed terminal benefits and others who resigned without receiving their dues were compensated.

While the turnaround of TOR is ongoing, Kombat affirmed that further efforts will be necessary to sustain the refinery's recovery.