IMF delegation visits TOR to assess recovery and financial reforms
A delegation from the International Monetary Fund (IMF) has visited the Tema Oil Refinery (TOR) to assess its operations, inspect ongoing rehabilitation works and examine management’s efforts to restore the facility’s operational and financial stability.
The visit formed part of the IMF team’s engagements with selected state-owned enterprises and government agencies in Ghana to understand their operations, financial positions, challenges and contributions to the national economy.
The delegation was led by the IMF’s Ghana Resident Representative, Dr. Adrian Alter, while TOR’s team was headed by its Managing Director, Edmond Kombat.
During discussions, Mr. Kombat outlined the operational and financial difficulties inherited by the current management, as well as measures introduced since May 2025 to rebuild confidence in the refinery and restore its major processing plants.
He said management had relied entirely on internally generated funds to sustain operations since taking office, without receiving financial support from the government.
“Since this new management took over, we have not received a dime from government. Every single thing is done through our internally generated funds,” he said.
Mr. Kombat explained that management had prioritised financial discipline, operational efficiency and the rehabilitation of critical infrastructure to ensure the refinery’s long-term sustainability.
He also disclosed that TOR was engaging the government to restructure its outstanding debts and reconcile historical financial obligations between the two parties.
According to him, the refinery inherited a debt burden of approximately US$517 million, including about US$120 million owed to the government.
He added that discussions were ongoing with other state institutions over outstanding financial obligations, with management exploring netting-off arrangements to establish the actual amounts owed by the respective parties.
On financial performance, Mr. Kombat said TOR recorded a profit in the previous year and expressed confidence that the refinery could maintain profitability in the current and subsequent years.
He attributed the positive outlook partly to improved macroeconomic conditions and ongoing efforts to strengthen the refinery’s operations and financial position.
As part of its long-term recovery strategy, management is considering listing TOR on the Ghana Stock Exchange to attract investment and raise additional capital for its operations and expansion. Mr. Kombat said the move could allow Ghanaian institutions and other investors to acquire shares in the company, creating another funding source to support its growth.
The IMF delegation also sought information on the volume of crude oil processed by TOR, particularly supplies obtained from Ghana’s oil fields.
Mr. Kombat disclosed that the refinery had processed approximately five million barrels of crude oil, of which about two million barrels came from domestic sources, with the remainder supplied from abroad.
He said TOR’s first domestic crude supply came from the Jubilee field through a transaction with Vitol, which was fully paid for. He also acknowledged the Ghana National Petroleum Corporation’s (GNPC) contribution through the supply of its share of Ghana’s crude allocation.
Mr. Kombat noted that Ghana produces approximately 38 million barrels of crude oil annually, with about 11 million barrels representing the government’s share.
He expressed hope that GNPC would provide TOR with its full crude allocation for refining by the following year, saying this would improve feedstock availability and support more consistent operations.
The discussions also examined the impact of TOR’s return to operations on Ghana’s economy and consumers.
Mr. Kombat said domestic refining could improve the availability of petroleum products, support price stability and reduce the country’s vulnerability to disruptions in international oil markets.
He noted that local refining could help shield Ghana from external supply shocks, particularly during periods of geopolitical tension and uncertainty, including the ongoing conflict in the Middle East.
He also acknowledged government interventions aimed at cushioning consumers against fluctuations in petroleum prices and stressed the importance of maintaining a reliable domestic supply.
Highlighting TOR’s commercial potential, Mr. Kombat pointed to its tank farm, storage infrastructure and product distribution network. He said the refinery has approximately one million metric tonnes of storage capacity, about three times that of the Bulk Oil Storage and Transportation Company (BOST).
He added that TOR is connected to eight privately operated depots, allowing it to pump petroleum products directly to those facilities. These arrangements, he said, provide additional revenue opportunities, alongside services such as laboratory testing of petroleum products.
On corporate governance and accountability, Mr. Kombat said the Ghana Audit Service was working to clear a six-year backlog of unaudited accounts.
He added that management planned to appoint an external audit firm at the refinery’s next Annual General Meeting to conduct subsequent audits. KPMG had previously undertaken audit assignments for the company.
The IMF delegation was also briefed on improvements in financial reporting, internal controls, staff-related reforms and measures to secure a consistent supply of crude oil.
Management further outlined ongoing efforts to increase processing capacity, rehabilitate critical units and restore facilities required for more reliable operations.
The initiatives are intended to strengthen TOR’s financial sustainability, enhance Ghana’s energy security and increase the refinery’s contribution to the country’s petroleum industry.
Following the discussions, the delegation toured parts of the facility to inspect rehabilitated infrastructure and ongoing engineering works, gaining first-hand insight into the progress made and the challenges that remain.
The IMF team expressed appreciation for the engagement and the opportunity to better understand the refinery’s operations and recovery plans.
TOR remains Ghana’s principal oil refinery, serving the domestic market while pursuing efforts to restore its infrastructure, improve financial performance and strengthen its role in the country’s energy sector.
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