The Chief Executive Officer of GOIL PLC, Edward Bawa, has disclosed that he inherited about $110 million in debt when he assumed office in 2025.
Speaking in an interview with Bernard Avle on The Point of View on Channel One TV on Monday, March 16, Mr. Bawa said the debt was owed to BP, which at the time was the only company supplying petroleum products to GOIL.
According to him, the company had struggled to meet payment deadlines for invoices, leading to what he described as a “ring-fenced” debt arrangement with the supplier.
“At the time I got there, if we were to take BP, there was a ring-fenced debt. Usually, there’s a maturing day for your invoices to be paid. The invoices would mature, and GOIL would not be able to pay. In terms of the ring-fenced debt, at the time I got there was about $110 million. We owed that to one company. That is BP,” he revealed.
Mr. Bawa explained that the situation made GOIL uncompetitive at the pumps because the premiums on petroleum products were high, particularly when fuel prices increased.
“BP was the only company that was supplying us with products. As and when we can pay for the products, premiums were very high, which made us uncompetitive at the pumps. When prices went up, it became an issue,” he stated.
He said the company has since taken steps to significantly reduce the debt.
“Because the exchange rate was a bit better for us as a country, we took advantage of it and engaged our bankers. We have been able to reduce the debt to about $30 million by paying off the rest,” he stated.
Mr. Bawa added that GOIL had also been grappling with challenges involving suppliers, outstanding obligations to banks, and shortages of petroleum products at some outlets, largely linked to the economic difficulties the country experienced in recent years.
