The government is taking steps to ring-fence the debt of the Tema Oil Refinery (TOR), despite the state-owned refinery recording a profit after tax of GH¢1.24 billion in 2025.
According to the Minister for Energy and Green Transition, John Abdulai Jinapor, the move is intended to clean up TOR’s balance sheet and position the refinery for long-term financial sustainability and growth.
Speaking at the 18th Annual General Meeting (AGM) of TOR in Accra, Mr. Jinapor said the government is committed to transforming the refinery into a commercially viable institution capable of attracting investment and strengthening Ghana’s energy security.
He explained that although TOR’s financial performance has improved, its debt burden remains a major obstacle to securing financing for future operations and expansion.
“When your balance sheet is impaired, it’s difficult to raise financing. The Minister of Finance has asked that a comprehensive assessment of all the energy sector agencies be conducted by an audit firm such as PwC. We are seeing a lot of improvements, but your balance sheet is a hindrance,” he said.
According to the Minister, the government is considering measures to isolate debts arising from government-related obligations and remove them from TOR’s books.
“What he wants to do is to look at the debt, particularly arising from the government side, so that we can ring-fence it and take it off your balance sheet and then give you a healthy balance sheet. With a healthy balance sheet, you can go to the market and raise finance,” he added.
The Managing Director of TOR, Edmond Kombat, welcomed the government’s intervention, describing it as critical to sustaining the refinery’s recent financial recovery and improving its competitiveness.
Speaking on the sidelines of the AGM, he said removing the debt burden would significantly enhance TOR’s ability to operate profitably and fulfil its mandate.
“The Minister mentioned that the government is making a decision and a direction to make sure that all those debts are ring-fenced and free us, it will make us a very vibrant and profitable refinery, and it will let us achieve the mandates that the President has given us,” Mr. Kombat stated.
The planned debt ring-fencing forms part of broader efforts by the government to restore confidence in TOR and strengthen its capacity to contribute to Ghana’s downstream petroleum sector.
