Edmond Kombat outlines GH₵10bn debt restructuring plan for TOR

Edmond Kombat, the Managing Director of the Tema Oil Refinery (TOR), has unveiled a comprehensive transformation agenda designed to restructure GH₵10 billion in inherited losses and significantly expand the facility's processing capacity. As part of President John Mahama’s "Reset Agenda," the refinery has already made strides in financial recovery, reducing its debt from $650 million to approximately $300 million. This fiscal turnaround has been supported by the Energy Sector Levies Act (ESLA), allowing the refinery to settle outstanding obligations with four major banks and begin restoring its financial viability.

Under a new initiative titled "Project Restore," TOR has resumed active operations using internally generated funds to finance critical maintenance on its crude distillation unit. The refinery returned to production on December 19, 2025, after years of inactivity where major units had been dormant since 2019 and 2021. Management is currently focusing on operational recovery and transparency to regain the trust of private petroleum companies and international partners. These efforts are aimed at ending a period of decline characterized by six consecutive years without audited financial statements.

The long-term strategic vision for the refinery includes a massive expansion of its refining capacity to meet 70% of Ghana's national fuel demand by 2028. Mr. Kombat detailed plans to increase the current facility's output from 45,000 to 85,000 barrels per stream day, while also constructing a new facility with a capacity of 115,000 barrels. This expansion would bring TOR’s total processing capacity to 200,000 barrels per day. The MD emphasized that these "Restoration and Legacy Projects" will also include social infrastructure, such as a new Specialist Hospital for emergency care and improved staff housing.

To ensure future price stability at the pumps, Mr. Kombat has proposed amending the Petroleum Management Act to allow TOR to purchase Ghanaian crude oil in Cedis rather than US Dollars. He noted that Ghana currently spends billions of dollars annually on petroleum imports, and shifting to local currency transactions for domestic crude would decouple fuel prices from exchange rate volatility. By refining local crude like Jubilee Medium Sweet and partnering with entities such as GOIL, the refinery aims to enhance national energy security and retain more economic value within the country.