TOR slashes debt from $650m to $300m, MD reveals

The Tema Oil Refinery (TOR) has managed to slash its debt from $650 million to $300 million as part of a restructuring program backed by the Energy Sector Levies Act (ESLA), according to Edmond Kombat, the Managing Director of TOR. The debt reduction is a key element of efforts to restore the refinery's financial viability. During a speech at the Government Accountability Series Press Conference, Kombat revealed that TOR had also settled its debts to four banks.

The company had been operating since the National Democratic Congress (NDC) handed over to the New Patriotic Party (NPP) administration in January 2017. Since then, key infrastructure and equipment, including an offshore mooring facility, a new furnace and boiler, and the Crude Distillation Unit (CDU) and Residue Fluid Catalytic Cracking (RFCC) Unit, have been secured or restored.

Despite these efforts, TOR's position has worsened. By the time Kombat took over in 2025, the refinery had accumulated losses of about GH¢10 billion, and its debt had risen to $517 million. TOR had been out of operation since April 2021 and is currently reduced to renting out storage space. The company had not filed audited financial statements for six consecutive years and owes significant amounts to several government entities and commercial partners.

Under President John Dramani Mahama's Reset Agenda, TOR has initiated Project Restore TOR to rehabilitate and restart the refinery, improve its financial position, and prepare it for long-term sustainability.