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’s financial position had deteriorated significantly over the years, alongside prolonged operational shutdowns, outstanding statutory obligations and growing liabilities to creditors.
Speaking at the Government Accountability Series at Jubilee House on Monday, October 26, 2026, Mr Kombat said the company had also recorded negative equity of GH¢7.6 billion by the end of 2024.
He contrasted the position with January 2017, when the previous NDC administration handed over a refinery whose debt had been reduced from approximately US$650 million to US$300 million.
According to him, the earlier restructuring was supported by the Energy Sector Levies Act, while exposures to four banks had been settled.
By the time the current management took over, however, the CDU had been inactive since April 2021 and the RFCC unit since 2019.
The refinery had also failed to file audited financial statements for six consecutive years, from 2019 to 2024.
Mr Kombat said TOR owed approximately GH¢200 million to the Ghana Revenue Authority and GH¢20 million to SSNIT, alongside outstanding amounts due to the Electricity Company of Ghana, Ghana Water Company and other creditors.
The company also had about GH¢190 million in outstanding obligations to its staff provident fund, retirees and former employees.
“By the end of 2024, TOR had negative equity of GH¢7.6 billion,” he said.
He added that the company had been reduced largely to renting storage space instead of carrying out its core mandate of refining crude oil.
Mr Kombat said management had responded by introducing a financial restructuring programme, commissioning an independent assessment of liabilities and engaging creditors on sustainable repayment arrangements.
It also pursued outstanding receivables, reviewed unaudited accounts and improved financial controls.
The refinery has since completed the outstanding audited accounts for 2019 to 2024 and the 2025 accounts, while recording a profit before tax of GH¢1.24 billion in 2025, according to SIGA.
Mr Kombat said the company’s trade and other payables had fallen from GH¢7.1 billion to GH¢5 billion within a year.
He 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 it into equity.
The Managing Director said management recognised that the refinery still had significant obligations to address but remained committed to improving its financial position and restoring its commercial viability.