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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 reduce the financial burden on the state-owned refinery.
TOR Managing Director Edmond Kombat disclosed this during a working visit by Parliament’s Energy Committee.
According to him, the refinery’s outstanding legacy obligations currently stand 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 explained.
Mr Kombat said the Ministry of Finance plans to include the proposed debt write-off in the 2026 Budget, which would further reduce TOR’s outstanding obligations.
“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.
Despite the expected reduction, the TOR Managing Director noted that the refinery continues to owe significant amounts to both private companies and state institutions.
He mentioned Sahara and BP among TOR’s private creditors, indicating that management is engaging them to explore possible discounts and other arrangements to reduce the amounts owed.
“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,” Mr Kombat told the committee.
He appealed to Parliament’s Energy Committee to support efforts to resolve TOR’s outstanding obligations to the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA).
Meanwhile, management is expected to continue negotiations with private creditors as part of broader efforts to address the refinery’s legacy debts and improve its financial position.