Accra: The Managing Director of Tema Oil Refinery, Edmond Kombat, has unveiled the significant operational and financial challenges that plagued the refinery prior to its recent revival, describing the situation as nearly beyond recovery.
According to Ghana Web, Kombat addressed fellows of the African Extractive Media Fellowship (AEMF) and traced the refinery's decline from stability in 2016 to a near-collapse by 2024. He noted that TOR's debt increased from about $300 million to approximately $517 million over the years, compounded by operational shutdowns and poor maintenance.
He revealed that the refinery faced substantial financial obligations, including debts to the Ghana Revenue Authority, ECG, Ghana Water, and staff-related funds, alongside years of unaudited accounts and significant cumulative losses. Critical infrastructure, such as storage tanks and processing units, was also left non-functional, with 17 tanks reportedly out of service.
Kombat also highlighted internal issues, such as financial distress, divisions, low staff morale, and a high attrition rate, with skilled workers leaving for opportunities in international markets. However, he noted that management has prioritized internal reforms to rebuild the refinery rather than relying on immediate government funding.
Efforts included restoring staff confidence and addressing longstanding human resource concerns. Over 300 staff petitions were reviewed, leading to promotions and salary adjustments. The refinery adopted unconventional strategies to generate revenue, such as extending operational hours and attracting regional clients like Burkina Faso for petroleum storage services.
These measures helped stabilize revenue streams and support restoration works. A significant milestone was reached on December 19, 2025, when TOR resumed refining operations, with the Crude Distillation Unit restored by in-house engineers. Ongoing works target the secondary processing unit, expected to enhance output and product value.
Management is also focused on restoring critical infrastructure and recruiting new staff. Kombat emphasized the strategic importance of TOR to Ghana's energy security, citing its capacity to produce aviation and premix fuel, as well as its storage and distribution infrastructure.
He cautioned that neglecting such an asset could have serious consequences, particularly during global supply disruptions, stressing the need for strong domestic refining capacity. Despite progress, Kombat acknowledged that the refinery's recovery is in its early stages, underscoring the need for continuity in management and policy direction to sustain the gains made.