Tema Oil Refinery was left 'deep in debt and disrepair' – Managing Director

The Managing Director (MD) of Tema Oil Refinery, Edmond Kombat, has revealed the scale of operational and financial challenges the refinery faced before its recent revival, describing the situation as “depressing” and nearly beyond recovery.

Speaking during an engagement with fellows of the African Extractive Media Fellowship (AEMF), Kombat traced the refinery’s trajectory from a relatively stable position in 2016 to what he described as a near-collapse state by 2024.

According to him, TOR’s debt, which had been reduced from $650 million to about $300 million before 2017, ballooned again to approximately $517 million over the following years, accompanied by operational shutdowns, poor maintenance, and rising liabilities.

He further disclosed that the refinery accumulated significant financial obligations, including debts to the Ghana Revenue Authority, ECG, Ghana Water, and staff-related funds, while also recording years of unaudited accounts and massive cumulative losses.

At the same time, critical infrastructure such as storage tanks and processing units was left non-functional, with 17 tanks reportedly out of service and key plants idle.

Kombat painted a picture of an institution plagued not only by financial distress but also internal divisions, low staff morale, and a high attrition rate, with skilled workers leaving for opportunities in international markets, including the Middle East and larger refineries like Dangote.

However, since assuming leadership, he says management has focused on rebuilding the refinery through internal reforms rather than relying on immediate government funding. “Central to this effort was restoring staff confidence and addressing longstanding human resource concerns, including stalled promotions.

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Over 300 staff petitions were reviewed, leading to promotions and salary adjustments aimed at rebuilding trust and productivity,” he said.

With limited financial capacity, the refinery adopted unconventional strategies to generate revenue.

These included extending operational hours, attracting regional clients such as Burkina Faso for petroleum storage services, and rebuilding confidence among private petroleum service providers.

According to Kombat, these measures helped stabilise revenue streams and support initial restoration works.

A major milestone in the refinery’s recovery came on December 19, 2025, when TOR resumed refining operations after years of inactivity.

The primary processing unit, known as the Crude Distillation Unit (CDU), was successfully restored by in-house engineers without external technical support.

Ongoing works are also targeting the secondary processing unit (RFCC), which is expected to further enhance output and product value.

Beyond operations, management has initiated efforts to restore critical infrastructure, including rehabilitating storage tanks, modernising the loading gantry, and recruiting new staff to address an ageing workforce.

Edmond Kombat noted that over 400 temporary workers and 300 permanent staff have been engaged as part of this rebuilding phase.

“The place was so depressing that it almost looked like there was no way out,” he admitted.

He emphasised the strategic importance of TOR to Ghana’s energy security, highlighting its unique capacity to produce aviation fuel and premix fuel, as well as its extensive storage and distribution infrastructure.

With storage capacity estimated at one million metric tonnes and connections to key national and regional supply routes, the refinery remains central to the country’s petroleum supply chain.

The Managing Director also warned that neglecting such an asset could have serious consequences, particularly in times of global supply disruptions.

He pointed to geopolitical tensions as a reminder of the need for strong domestic refining capacity and adequate fuel reserves.

While acknowledging progress, he maintained that the refinery’s recovery is still in its early stages.

“We are just scratching the surface,” he said, stressing the need for continuity in management and policy direction to sustain the gains made so far.