TOR on the Brink: New MD Exposes Decade of Mismanagement at Ghana's Only Refinery

Ghana's sole refinery is teetering on the edge of financial and operational ruin, according to damning revelations by Tema Oil Refinery's Managing Director Edmond Kombat. Speaking at the Government Accountability Series, Mr. Kombat painted a picture of institutional decay that has left the nation's critical energy infrastructure barely functional and drowning in debt.

The scale of TOR's crisis is staggering. The refinery has accumulated losses totalling approximately GH¢10 billion, whilst external debt has ballooned from $300 million in 2016 to roughly $517 million by early 2025. Most critically, the two engines that should drive Ghana's domestic refining capacity have been completely non-operational for years—the Crude Distillation Unit since April 2021 and the Residue Fluid Catalytic Cracking Unit since 2019. This means TOR has been unable to perform its core function of refining crude oil for nearly half a decade.

Without functioning production units, TOR has essentially become a storage facility operator, renting tank space to bulk distribution companies rather than generating value through refining. Out of 59 storage tanks, 18 are currently out of service, with some idle since 2004. The physical infrastructure reflects years of deferred maintenance and systematic underinvestment.

The Financial and Governance Crisis

TOR's books tell an even more alarming story. The refinery failed to file audited financial statements for six consecutive years between 2019 and 2024—a corporate governance failure that speaks volumes about internal controls and accountability. By the end of 2024, TOR's equity position had collapsed into negative territory at GH¢7.6 billion.

The company faces crushing statutory obligations: GH¢200 million owed to the Ghana Revenue Authority, GH¢20 million to SSNIT, outstanding bills to the Electricity Company of Ghana and Ghana Water Company, and GH¢190 million in arrears to staff provident funds, retirees and former employees. Additional commercial debts are owed to private entities and state-owned enterprises including GNPC and VRA.

Perhaps most troublingly, Mr. Kombat revealed that between 2019 and 2024, TOR sold third-party products belonging to three bulk distribution companies—valued at millions of dollars—to meet staff payroll obligations, without the knowledge or consent of the product owners. This represents both a financial crime and a breach of commercial trust that exposes the state and the refinery to potential legal liability.

Why It Matters for Ghana

TOR's collapse has profound implications for Ghana's energy security and economy. A functioning domestic refinery reduces dependence on imported refined products, saves foreign exchange, creates jobs, and provides downstream industries with local supply reliability. With TOR non-operational, Ghana must import all refined petroleum products, draining resources and leaving the nation vulnerable to global price shocks and supply disruptions.

The refinery's workforce is in crisis. Staff morale has hit rock bottom, with over 300 unresolved promotion petitions dating back a decade, triggering departures and internal divisions. Delayed wages and arrears to retirees have created social hardship among those who built the institution.

The disclosure that TOR nearly became available for sale or lease for just $21 million—despite its strategic importance to the nation—underscores the urgency of intervention. Restoring TOR requires immediate capital injection for equipment rehabilitation, debt restructuring, governance reforms, and management overhaul. Without swift action, Ghana risks permanently losing control of its refining capacity to foreign operators.