IMF Team Visits Tema Oil Refinery to Assess Recovery Efforts

A delegation from the International Monetary Fund (IMF) has visited the Tema Oil Refinery (TOR) to assess ongoing rehabilitation works and familiarise itself with management’s efforts to restore the facility to sustained operational and financial stability.

The visit, which took place on October 24, 2026, in Tema, formed part of the IMF team’s engagements with selected state-owned enterprises and government authorities to understand their operations, financial positions, challenges and contributions to Ghana’s economy.

The delegation was led by the IMF’s Ghana Resident Representative, Dr Adrian Alter, while TOR’s team was headed by Managing Director Edmond Kombat.

During discussions, Mr Kombat outlined the operational and financial difficulties inherited by the current management and highlighted measures introduced since May 2025 to restore confidence in the refinery and revive its major processing plants.

Mr Kombat said management had relied on internally generated funds to sustain the refinery’s operations since taking office, stressing that the company had not received direct government funding during the period.

“Since this new management took over, we have not received a dime from government. Every single thing is done through our internally generated funds,” he said.

He explained that management had prioritised financial discipline, operational improvements and the rehabilitation of critical facilities as part of efforts to return TOR to long-term sustainability.

The refinery is also engaging the government over outstanding debt obligations, with discussions focusing on possible restructuring and reconciliation of historical financial commitments.

According to Mr Kombat, TOR inherited a debt burden of approximately US$517 million, of which about US$120 million is owed to the government.

“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 explained.

Management is also engaging other state institutions over outstanding financial obligations, including possible netting-off arrangements to establish the actual positions of the parties involved.

On its financial performance, Mr Kombat disclosed that TOR recorded a profit in the previous year and expressed optimism that the refinery could sustain profitability in the current and subsequent years.

He attributed the positive outlook partly to improved macroeconomic conditions and management’s efforts to strengthen the refinery’s operational and financial position.

As part of its long-term recovery strategy, TOR is considering a potential listing on the Ghana Stock Exchange (GSE) to attract investment and raise additional capital for its operations and expansion.

Mr Kombat said a listing could provide opportunities for Ghanaian institutions and other investors to acquire shares in the refinery, creating an alternative source of financing to support its recovery and growth.

The proposal, however, remains under consideration and would form part of the refinery’s broader strategy to improve its financial position.

The IMF delegation also sought information on the volume of crude oil processed by TOR, particularly supplies sourced from Ghana’s domestic oil fields.

Mr Kombat said the refinery had processed approximately five million barrels of crude oil, including about two million barrels from Ghanaian fields, with the remainder obtained from external sources.

He explained that TOR’s first domestic crude supply came from the Jubilee field through a transaction with Vitol, which was fully paid for. He also acknowledged the contribution of the Ghana National Petroleum Corporation (GNPC), which supplied its share of Ghana’s crude allocation to the refinery.

“Our first domestic crude came from the Jubilee field through Vitol, and it was fully paid for. GNPC also gave us its portion of Ghana’s allocation,” he stated.

According to the Managing Director, Ghana produces approximately 38 million barrels of crude oil annually, of which about 11 million barrels represent the government’s share.

He expressed hope that GNPC would make its full crude allocation available to TOR for refining by 2027, saying increased access to domestic feedstock could improve supply reliability and support more consistent refinery operations.

During the engagement, Mr Kombat outlined the potential benefits of TOR’s resumption of operations for petroleum product availability, price stability and Ghana’s ability to withstand disruptions in international oil markets.

He said domestic refining could help reduce the country’s exposure to external supply shocks, particularly during periods of geopolitical tension and uncertainty, including the ongoing conflict in the Middle East.

He also acknowledged government interventions aimed at cushioning consumers against fluctuations in petroleum prices, emphasising the importance of maintaining reliable domestic supplies.

The refinery’s operations, he indicated, could contribute to strengthening Ghana’s energy security by reducing dependence on imported refined petroleum products.

Mr Kombat also drew attention to TOR’s tank farm, storage infrastructure and product distribution network as important assets that could support its commercial recovery.

He disclosed that the refinery has approximately one million metric tonnes of storage capacity, which he said is three times the capacity of the Bulk Oil Storage and Transportation Company (BOST).

He further explained that TOR is connected to eight privately operated depots, allowing it to pump petroleum products directly to those facilities.

According to management, these arrangements create additional revenue opportunities beyond refining, while other commercial activities, including laboratory services for petroleum product testing, could contribute to the refinery’s income.

The delegation was briefed on how these facilities could support the company’s efforts to diversify revenue streams and improve its financial sustainability.

Corporate governance and financial accountability also featured prominently in the discussions, particularly efforts to address a six-year backlog of unaudited accounts.

Mr Kombat said the Ghana Audit Service had undertaken work to clear the outstanding audit backlog. Management also intends to appoint an external audit firm at the refinery’s next Annual General Meeting to handle subsequent audits. KPMG had previously conducted audit assignments for the company.

He said improvements in financial reporting, internal controls and staff-related reforms were part of a broader strategy to strengthen accountability, improve financial discipline and enhance operational efficiency.

Management also briefed the delegation on measures to sustain crude oil supplies and support the refinery’s continued operations.

The IMF team received an update on ongoing efforts to increase TOR’s processing capacity, rehabilitate critical units and restore facilities needed to support more reliable operations.

The interventions are intended to strengthen the refinery’s contribution to Ghana’s energy security, improve its financial sustainability and position it to play a greater role in the country’s petroleum value chain.

Following the discussions, the delegation toured parts of the refinery to inspect rehabilitated facilities and ongoing engineering works.

The tour provided the IMF team with an opportunity to observe the refinery’s operational environment, assess progress under the current management and understand the work remaining to complete its recovery programme.

Members of the delegation expressed appreciation for the engagement and the opportunity to gain a better understanding of TOR’s operations and rehabilitation efforts.

The visit provided a platform for management to explain its plans to restore critical infrastructure, improve financial performance and strengthen the refinery’s contribution to Ghana’s energy security.

TOR remains Ghana’s principal oil refinery, with its management seeking to improve operational reliability, expand commercial opportunities and establish a more sustainable financial footing.