Ghana: TOR’s Recovery Could Prompt IMF To Rethink Advice On State-Owned Firms, MD Says

Tema Oil Refinery (TOR) Managing Director Edmond Kombat has said he believes the International Monetary Fund could reconsider its policy recommendations on state-owned enterprises in developing countries following a visit to the refinery by the fund’s Ghana team last week.

Speaking on Monday during a media briefing as part of the Government Accountability Series, Kombat said the institution generally favoured private enterprise over state ownership of businesses.

He argued that the refinery’s recovery demonstrated that state-owned companies could operate successfully.

“It looks like they’re changing their literature because most of those prescriptions that they give actually haven’t helped developing countries and we are beginning to show that state institutions can work and work very well. And we were happy to receive them and show them that under His Excellency President John Dramani Mahama, state entities are working and are working not as loss-making entities,” Kombat said.

He said management remained cautious despite the refinery’s progress.

TOR reported a profit after tax of GH¢1.24 billion for 2025, on a profit before tax of GH¢1.4 billion, Kombat said.

The refinery currently processes 28,000 barrels per stream day. Maintenance work is underway to bring another unit into operation and restore its original processing capacity of 45,000 barrels per stream day, with a medium-term target of 100,000 barrels per stream day.

The refinery had been idle for more than six years and carried substantial debts. Its recent progress has attracted visits from stakeholders, including academic institutions, seeking to assess its recovery.

During the IMF delegation’s visit, led by the fund’s resident representative in Ghana, Adrian Alter Kombat outlined improvements in financial reporting and controls, workforce reforms and efforts to secure a steady crude supply.

He also detailed the operational and financial challenges inherited by management and measures introduced since May 2025 to restore stability.

Kombat said management had relied on internally generated funds to sustain operations, prioritising financial discipline, operational improvements and the rehabilitation of critical facilities.

TOR inherited debts of about $517 million, including about $120 million owed to the government, he said.

“Out of the US$517 million debt we inherited, we owe about US$120 million to government. We are trying to restructure our debt with government,” he said.

Discussions with the government were focused on restructuring the debt and reconciling historical financial obligations between the refinery and the state, he added.

Kombat said management hoped to maintain profitability this year and beyond, citing improved macroeconomic stability and reforms at the refinery.

As part of its long-term strategy, management is considering listing TOR on the Ghana Stock Exchange to attract investment and raise capital for operations and expansion.

He said a listing would allow Ghanaian institutions and other investors to acquire shares in the company and support its recovery.

On operations, Kombat said TOR had processed about five million barrels of crude, including about two million barrels from Ghanaian fields, with the balance sourced externally.

The refinery’s first domestic crude supply came from the Jubilee field through a transaction with Vitol that had been fully paid for, he said.

He also acknowledged the Ghana National Petroleum Corporation (GNPC) for supplying its share of Ghana’s crude allocation to the refinery.

Kombat said Ghana produced about 38 million barrels of crude annually, of which about 11 million barrels represented the government’s share. He expressed hope that GNPC would make its full allocation available to TOR for refining next year to improve feedstock availability and sustain operations.

Domestic refining could improve petroleum product availability, support price stability and reduce Ghana’s exposure to external supply disruptions, particularly during geopolitical tensions such as the conflict in the Middle East, he said.

He also acknowledged government measures aimed at cushioning consumers against changes in petroleum prices.

Members of the IMF delegation expressed appreciation for the progress made and the opportunity to better understand the refinery’s operations.