The Tema Oil Refinery (TOR) had accumulated losses of approximately GH¢10 billion and debt of about US$517 million when the current management assumed office in May 2025, Managing Director Edmond Kombat has disclosed.
He said the refinery was grappling with prolonged operational shutdowns, outstanding statutory obligations, mounting creditor liabilities and years of unfiled audited financial statements.
Speaking at the Government Accountability Series at Jubilee House on Monday, October 26, 2026, Mr Kombat disclosed that TOR had recorded negative equity of GH¢7.6 billion by the end of 2024.
He said the refinery’s financial position had deteriorated significantly, leaving the company largely dependent on renting out storage space rather than performing its core mandate of refining crude oil.
TOR’s financial and operational challenges
Mr Kombat contrasted the refinery’s position at the time the current management took over with its financial standing in January 2017, when the previous National Democratic Congress (NDC) administration handed over the facility.
According to him, the refinery’s debt had been reduced from approximately US$650 million to US$300 million during that period, supported by the Energy Sector Levies Act and the settlement of exposures to four banks.
However, by May 2025, the refinery was facing significant financial and operational difficulties.
Mr Kombat said the Crude Distillation Unit (CDU) had been inactive since April 2021, while the Residue Fluid Catalytic Cracker (RFCC) unit had been out of operation since 2019.
The refinery had also failed to file audited financial statements for six consecutive years, from 2019 to 2024.
Its outstanding obligations included approximately GH¢200 million owed to the Ghana Revenue Authority (GRA) and GH¢20 million to the Social Security and National Insurance Trust (SSNIT).
TOR also owed money to the Electricity Company of Ghana (ECG), Ghana Water Company and other creditors.
Additionally, about GH¢190 million remained outstanding in obligations to the company’s staff provident fund, retirees and former employees.
“By the end of 2024, TOR had negative equity of GH¢7.6 billion,” Mr Kombat said.
Management introduces financial restructuring
Mr Kombat said the current management had introduced a financial restructuring programme to address the refinery’s financial challenges and improve its commercial viability.
The measures include commissioning an independent assessment of the company’s liabilities, engaging creditors to negotiate sustainable repayment arrangements and pursuing outstanding receivables.
Management has also reviewed unaudited accounts and strengthened financial controls as part of efforts to improve accountability and financial management.
He disclosed that the refinery had completed the outstanding audited financial statements for 2019 to 2024, as well as its 2025 accounts.
According to him, the company recorded a profit before tax of GH¢1.24 billion in 2025, citing figures from the State Interests and Governance Authority (SIGA).
Mr Kombat further said TOR’s trade and other payables had declined from GH¢7.1 billion to GH¢5 billion within a year.
Government considers US$120m debt relief
As part of efforts to address the refinery’s legacy liabilities, Mr Kombat disclosed that the Ministry of Finance was working with TOR to consider writing off US$120 million in legacy debt owed to the government or converting the amount into equity.
The proposed arrangement is expected to form part of broader efforts to improve the company’s financial position, although the statement did not indicate that a final decision had been reached.
Mr Kombat acknowledged that the refinery still had significant obligations to address but said management remained committed to strengthening its finances and restoring its commercial viability.
“The team is focused to deliver even better results for 2026,” he said.
