After four years of dormancy, the Tema Oil Refinery (TOR) is gearing up to resume full operations by October 2025. The announcement was made by Edmund Kombat, Acting Managing Director of TOR, during an appearance before Parliament’s Energy Committee.
Mr. Kombat confirmed that strategic interventions are underway to restore Ghana’s only state-owned refinery to functional status. The goal is to reduce Ghana’s overwhelming reliance on imported refined petroleum products, which currently drains an estimated $400 million monthly from the national purse.
“We are putting in place strategic measures to bring TOR back to life and sustain its operations going forward.”
Edmund Kombat, Acting Managing Director of TOR
TOR’s reactivation plan targets a processing capacity of up to 60% of the country’s crude oil demand. If realized, this would significantly improve Ghana’s energy security, reduce forex outflows, and stabilize pump prices by cushioning domestic supply chains from international volatility.
The refinery ceased operations in 2021, citing a persistent shortage of crude oil feedstock. This came atop years of financial mismanagement, operational inefficiencies, and legacy liabilities that compounded the company’s challenges.
Mr. Kombat disclosed that TOR’s total debt had ballooned to $517 million as of December 2024, citing trade obligations, unpaid crude deliveries, and revised government accounting practices.
“Some of the debts are legacy—crude was supplied and not paid for.
“Also, there were times the Ministry of Finance gave grants which were reclassified as debt under the IMF deal. These contributed to the surge in liabilities.”
Edmund Kombat, Acting Managing Director of TOR
He added that some debts stemmed from unhedged crude oil trades, exposing TOR to price fluctuations that led to significant losses.
“There was a lot of exposure from trades that weren’t hedged. It led to a debt ballooning, but we are here to ensure this isn’t repeated.”
Edmund Kombat, Acting Managing Director of TOR
Auditing Lapses and Governance Concerns
In a startling revelation, Mr. Kombat acknowledged that TOR has not completed an audit of its financial accounts since 2019. This has raised red flags about corporate governance and transparency in the handling of public assets.
“We are currently working to finalize the outstanding audits, and we expect to present the updated financial reports to Parliament by next month.”
Edmund Kombat, Acting Managing Director of TOR
Members of Parliament on the Energy Committee expressed concern over the delayed audits and called for heightened oversight and transparency, especially as the refinery prepares to attract new investment partners.
The refinery’s planned revival coincides with broader government efforts to reduce Ghana’s energy import bill and support cedi stability by limiting the need for foreign currency in petroleum purchases. The announcement also comes amid rising geopolitical risks in global oil markets, which threaten to disrupt supply chains and increase costs.
Energy analysts have welcomed TOR’s return but warned that its success will hinge on sound financial restructuring, effective feedstock procurement, and strong leadership to avoid the pitfalls of the past.
The potential reopening of TOR has been viewed by some as a step towards reviving industrialization and job creation in the petroleum sector. If the refinery becomes operational by October as planned, it could also play a crucial role in the Mahama administration’s push to establish Ghana as a regional energy hub.
Test of Political Will
For now, TOR’s comeback plan represents both a test and an opportunity—a test of political commitment to state-owned enterprise reform, and an opportunity to localize value within the energy supply chain.
With debt restructuring plans underway and operational timelines set, stakeholders will be closely watching whether TOR can move from promise to performance.
Parliament is expected to maintain strict oversight, particularly in relation to audit finalizations, procurement compliance, and transparent debt disclosures.
“Once we verify and authenticate what we’ve been able to bring down, that will be communicated publicly.”
Edmund Kombat, Acting Managing Director of TOR
As Ghana inches toward fuel self-sufficiency, TOR’s success—or failure—could significantly shape the trajectory of the country’s energy independence and fiscal stability in the years ahead.
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