The government has announced plans to ring-fence the debt of the Tema Oil Refinery (TOR), despite the state-owned refinery recording a profit after tax of GH¢1.24 billion in 2025.
According to the Minister for Energy and Green Transition, John Abdulai Jinapor, the move is aimed at cleaning up TOR’s balance sheet and positioning the refinery for long-term financial sustainability and growth.
Speaking at the 18th Annual General Meeting of TOR in Accra, Mr. Jinapor said government is committed to transforming the refinery into a commercially viable institution capable of attracting investment and strengthening Ghana’s energy security.
He explained that although TOR’s financial performance has improved significantly, its debt burden remains a major obstacle to securing financing for future operations and expansion.
“When your balance sheet is impaired, it’s difficult to raise financing. The Minister of Finance has asked that a comprehensive assessment of all the energy sector agencies be conducted by an audit firm such as PwC. We are seeing a lot of improvements, but your balance sheet is a hindrance,” he said.
According to the Minister, government is considering measures to isolate debts arising from government-related obligations and remove them from TOR’s books.
“What he wants to do is to look at the debt, particularly arising from the government side, so that we can ring-fence it and take it off your balance sheet and then give you a healthy balance sheet. With a healthy balance sheet, you can go to the market and raise finance,” he added.
Managing Director of TOR, Edmond Kombat, welcomed the government’s intervention, describing it as a major step toward sustaining the refinery’s financial recovery and improving its competitiveness.
He said removing the debt burden would enable TOR to operate more efficiently, attract investment and better deliver on its mandate.
The planned debt ring-fencing forms part of government’s broader efforts to restore confidence in TOR and strengthen its role in Ghana’s downstream petroleum sector.
