Tema:Managing Director of the Tema Oil Refinery (TOR), Edmond Kombat, has announced that the Ministry of Finance is planning to write off approximately $120 million of the refinery's legacy debt. This measure is part of an initiative to alleviate the financial burden on the state-owned refinery.
According to Ghana Web, Kombat shared these details during a visit by Parliament's Energy Committee to the refinery. He highlighted the financial struggles TOR is facing and noted that the refinery's legacy debt currently exceeds $400 million, even after a previous restructuring effort.
Kombat stated that the proposed debt write-off by the Ministry of Finance is expected to be part of the 2026 Budget. This action would further reduce TOR's debt if implemented. Despite this potential relief, TOR still has considerable debts owed to both private companies and government institutions.
Among the private creditors are companies like Sahara and BP. Kombat mentioned that management is in talks with these entities to explore options for debt reduction, including negotiating discounts. He also sought assistance from the Energy Committee to address debts owed to the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA).
Kombat emphasized that while government intervention would ease TOR's financial burden, ongoing discussions with private creditors are crucial to resolving the refinery's remaining financial obligations.