Gov’t to Ring-Fence TOR’s Legacy Debt Despite GH¢1.24bn Profit

Edited by Solomon Kwabena Nana-Ansah – Paaps – 

The Government of Ghana has announced plans to ring-fence the legacy debt of the Tema Oil Refinery (TOR), despite the state-owned refinery recording a post-tax profit of GH¢1.24 billion in 2025.

The Minister for Energy and Green Transition, John Abdulai Jinapor, disclosed the move during TOR’s 18th Annual General Meeting (AGM) in Accra, describing it as a critical step toward restoring the refinery’s financial health, improving its creditworthiness, and positioning it for long-term growth.

According to the Minister, while TOR’s recent financial performance reflects significant operational improvements, its debt-laden balance sheet continues to limit its ability to attract investment and secure financing for expansion and modernization.

«”When your balance sheet is impaired, it’s difficult to raise financing. The Minister for Finance has directed that a comprehensive assessment of all energy sector agencies be conducted by an audit firm such as PwC. We are seeing improvements, but your balance sheet remains a major hindrance,” Mr. Jinapor stated.»

He explained that government is considering a framework to separate liabilities arising from government-related obligations from TOR’s books, allowing the refinery to operate with a stronger and healthier balance sheet.

«”The objective is to ring-fence government-related debts and remove them from TOR’s balance sheet. Once that is done, the refinery will be in a stronger position to access the capital market and raise financing for its operations and expansion,” he added.»

TOR’s Managing Director, Edmond Kombat, welcomed the initiative, describing it as a major boost to the refinery’s ongoing transformation agenda.

He noted that removing the historical debt burden would strengthen TOR’s competitiveness, improve profitability, and enable the refinery to effectively deliver on the mandate set by President John Dramani Mahama.

The proposed debt ring-fencing forms part of government’s broader strategy to restore investor confidence in TOR, enhance its operational efficiency, and reinforce its role in strengthening Ghana’s downstream petroleum industry and national energy security.