Government to write off $120 million of TOR's legacy debt – MD

Managing Director of the Tema Oil Refinery (TOR), Edmond Kombat, has revealed that the Ministry of Finance is expected to write off about US$120 million of the refinery’s legacy debt.

He said the move forms part of efforts to reduce TOR’s outstanding obligations and ease the financial pressure on the state-owned refinery.

Kombat disclosed this during a working visit by Parliament’s Energy Committee to the refinery on Tuesday, September 22, 2026, where he outlined the financial challenges facing the company.

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According to him, TOR’s legacy debt currently stands at more than US$400 million following an earlier 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 explained.

He said the planned debt write-off by the Ministry of Finance would further reduce the amount owed by the refinery if it is included 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,” he said.

Kombat, however, noted that TOR still has significant debts owed to both private companies and government institutions.

He mentioned Sahara and BP among the refinery’s private creditors and said management was engaging them on possible ways to reduce the amounts owed, including negotiating discounts.

He further appealed to Parliament’s Energy Committee to help resolve debts owed to the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA).

He said while government support would help reduce TOR’s debt burden, management would continue discussions with private creditors as part of efforts to address the refinery’s remaining financial obligations.

“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.

Ministry of Finance to write off $120m of TOR’s $400m legacy debt – MD Edmund Kombat reveals#JoyNews pic.twitter.com/Qo8vFJv8jS

— JoyNews (@JoyNewsOnTV) September 22, 2026