Ghana: TOR Returns To Profit As Government Moves To Ring-Fence Its Legacy Debt

Ghana’s Minister for Energy and Green Transition, Dr. John Abdulai Jinapor, has praised the management and Board of the Tema Oil Refinery (TOR) for restoring the refinery to crude oil processing and delivering a profit before tax of GH¢1.42 billion in 2025.

Speaking at the refinery’s 18th Annual General Meeting (AGM), held at The Palms by Eagles (formerly Holiday Inn Hotel) in Accra, Dr. Jinapor said the current management and Board had demonstrated strong leadership by reviving a refinery that had remained idle for several years.

“In less than two years, you have demonstrated competence by turning around a refinery that had been idle for years,” he said.

“For me, it shows that leadership means a lot. With the right kind of leadership, management, and Board, you can turn around a situation that looks insurmountable. In less than two years, you have achieved a monumental feat. This is a significant achievement.”

“I can only say thank you to you all. You have done what one can describe as unprecedented,” he added.

Dr. Jinapor disclosed that he had held discussions with the Minister for Finance, Dr. Cassiel Ato Forson, on the need to ring-fence the refinery’s legacy debt, particularly obligations owed to the government.

According to him, the move would provide TOR with a cleaner balance sheet, enabling it to access the financial markets to raise capital for its operations.

As of the end of December 2024, the refinery owed US$97 million to the government, US$58 million to the Ghana National Petroleum Corporation (GNPC), US$78.9 million to the Volta River Authority (VRA), US$128 million to Sahara Oil, and US$41 million to BP.

“The Minister for Finance has asked me to engage an audit firm to undertake a comprehensive assessment of all energy sector agencies. What we want to do is examine the debt, particularly debt owed to the government, so that we can ring-fence it and remove it from the balance sheet. That will enable TOR to access the financial market to raise funds,” Dr. Jinapor said.

He added that the government was also making arrangements to supply the refinery with locally produced crude oil from Ghana’s upstream petroleum sector.

He reaffirmed the government’s commitment to supporting the refinery to ensure it sustains its operations.