The Managing Director of Tema Oil Refinery, Edmund Kombat, has revealed that Bulk Distribution Companies (BDCs) had completely stopped bringing petroleum products to the refinery because fuel stored there kept disappearing. Kombat stated that when he took over, the refinery faced deep mistrust from BDCs and Oil Marketing Companies. The situation had reached a point where companies gave up on TOR as a storage option, leading to a significant loss of business for the refinery.
According to Kombat, rebuilding trust became central to his turnaround strategy for TOR. He personally engaged BDCs, OMCs, and companies from neighboring countries, giving assurances that any product stored at TOR would be fully accounted for. The first batch of BDCs that agreed to return and store fuel at TOR received their full quantities back, which helped rebuild goodwill and triggered a rush of new demand for storage space at the refinery.
The returning business gave TOR a renewed revenue stream through storage charges, product transfers, and rack operations. Kombat stated that the money generated was channeled into pressing operational needs, including turnaround maintenance work on the refinery's Crude Distillation Unit. This effort helped improve the refinery's operations and financial stability.
Part of the funds generated was also used to clear long-outstanding payments owed to former staff. Several retired workers had not received their terminal benefits, while others who had resigned from TOR were still owed money. Management prioritized settling those obligations to restore trust and stability within the organization.
The development adds fresh detail to Ghana's ongoing struggle with TOR's finances and the country's fuel prices. The Finance Ministry plans to write off about $120 million of TOR's roughly $400 million legacy debt, a move aimed at easing the refinery's financial burden. This effort is expected to help TOR recover from its financial challenges.
The situation at TOR has a direct bearing on the refinery's revenue and its capacity to service debt without further burdening the state. A financially stable TOR that can process and store fuel domestically is tied to the broader conversation around fuel prices and supply reliability. The Energy Committee's ongoing tour of TOR, GOIL, and Sentuo Refinery is part of its scrutiny of rising fuel prices nationwide.
Kombat cautioned that the turnaround at TOR remains a work in progress, with more effort still needed to sustain the refinery's recovery. The timeline for completing the turnaround and the Energy Committee's tour has not been specified. However, the progress made so far is a positive step towards restoring TOR's financial stability and operational efficiency.
Key points
- Bulk Distribution Companies stopped storing fuel at Tema Oil Refinery due to missing products.
- TOR's MD, Edmund Kombat, implemented a trust-rebuilding effort to attract BDCs back to the refinery.
- The Finance Ministry plans to write off $120 million of TOR's $400 million legacy debt.
