As Finance Ministry to Write Off $120m of TOR’s Legacy Debt
By Prince Ahenkorah
The Ministry of Finance is expected to write off approximately US$120 million of the Tema Oil Refinery’s (TOR) legacy debt as part of efforts to ease the financial burden on the state-owned refinery.
The move is expected to further reduce TOR’s outstanding liabilities and support efforts to restore the refinery to a more financially sustainable position.
TOR’s Managing Director, Edmond Kombat, disclosed this when he led management to receive Parliament’s Energy Committee during a working visit to the refinery.
According to Mr Kombat, TOR’s legacy debt currently stands at about US$400 million following an earlier debt restructuring exercise.
“We do have legacy debts on our books. When we did the restructuring, the first phase brought it down to about $400-and-something million,” he said.
He explained that the Ministry of Finance was expected to include the proposed debt write-off in the 2026 Budget.
“Currently, the Ministry of Finance is saying they are going to write off some of the debts owed to them. I think they are including it in this year’s budget. It’s about $120 million. So if that is taken out, it will also further bring the debt down,” Mr Kombat said.
Despite the expected write-off, he noted that TOR continued to face substantial financial obligations to both private companies and other state institutions.
Among its private creditors, Mr Kombat mentioned Sahara and BP, indicating that management was engaging them to negotiate possible discounts on the outstanding amounts.
He said the refinery also owed significant sums to the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA).
“We also owe GNPC and VRA. Because they are state institutions, we will need your help as the Parliamentary Select Committee to help net it off,” he told the committee.
Mr Kombat appealed to Parliament’s Energy Committee to support efforts to resolve the debts owed to the two state institutions.
He said such an arrangement, together with ongoing negotiations with private creditors and the proposed US$120 million write-off, could further ease TOR’s financial obligations.