TOR debt climbs to $517 million amid operational, IMF pressures

Tema Oil Refinery (TOR) has revealed that its total debt reached $517 million by the end of 2024, driven largely by trade-related liabilities and adjustments mandated under Ghana’s deal with the International Monetary Fund (IMF).

TOR’s Acting Managing Director, Edmund Kombat, disclosed this during a media briefing after appearing before Parliament’s Energy Committee. He noted that many of the debts originated from unpaid crude oil supplies and other operational obligations.

“Some of these are trade debts and legacy liabilities where crude was supplied but never paid for,” he explained. “At times, the Ministry of Finance supported TOR with grants. However, under the IMF deal, some of those grants were reclassified as debt.”

Kombat added that unhedged trades in previous years exposed TOR to significant market risks, further compounding the debt crisis.

Despite the massive debt, management is optimistic. TOR is currently verifying all outstanding liabilities and engaging stakeholders to restructure its finances.

“Once we authenticate the reductions we’ve made, we will share that with the public. Our goal is to avoid repeating the financial missteps of the past,” he assured.

The debt revelation comes as TOR pushes to resume full operations by October 2025, following a prolonged shutdown caused by a lack of crude oil. Key facilities like the Crude Distillation Unit (CDU) and the Residue Fluid Catalytic Cracker (RFCC) are being refurbished, with hopes that the refinery’s revival will cut Ghana’s dependency on imported refined petroleum.