TOR eyes stock market listing as it tackles $517m debt

The Tema Oil Refinery (TOR) is considering a listing on the Ghana Stock Exchange as management seeks fresh investment while pursuing the restructuring of an inherited debt burden of approximately $517 million.

Managing Director Edmond Kombat disclosed this during a visit by an International Monetary Fund (IMF) delegation led by the Fund’s Ghana Resident Representative, Dr Adrian Alter.

The delegation visited the refinery to assess rehabilitation works and understand efforts to restore sustained operations and financial stability.

The engagement formed part of the IMF team’s discussions with government authorities and selected state-owned enterprises.

Mr Kombat said a potential stock market listing would let Ghanaian institutions and other investors buy shares in TOR, providing capital for operations and expansion.

He told the delegation that management had relied on internally generated funds since taking office in May 2025.

“Since this new management took over, we have not received a dime from government. Every single thing is done through our internally generated funds,” he said.

Mr Kombat said management had prioritised financial discipline, operational improvements and the rehabilitation of critical facilities.

Of the approximately $517 million debt inherited, he said about $120 million was owed to the government. Discussions were underway to restructure that obligation and reconcile historical financial commitments between TOR and the state.

The refinery is also engaging other state institutions over outstanding obligations. The refinery is exploring possible arrangements to offset amounts owed between the parties and establish their respective financial positions.

Despite the debt burden, Mr Kombat said TOR recorded a profit last year. He expressed optimism that improved macroeconomic conditions and operational reforms would help sustain profitability.

Responding to questions about crude supplies, he said the refinery had processed approximately five million barrels, including about two million barrels sourced from Ghana’s oil fields. The remainder came from external sources.

“Our first domestic crude came from the Jubilee field through Vitol, and it was fully paid for. GNPC also gave us its portion of Ghana’s allocation,” he said.

Mr Kombat expressed hope that the Ghana National Petroleum Corporation would make its full crude allocation available to TOR for refining by the following year. He said this would improve feedstock availability and support more consistent operations.

He argued that domestic refining could strengthen petroleum supplies and reduce Ghana’s exposure to international market disruptions.

Beyond refining, Mr Kombat highlighted opportunities to earn revenue from TOR’s storage infrastructure, distribution network and petroleum-testing laboratory.

He said the refinery had approximately one million metric tonnes of storage capacity and connections to eight privately operated depots, allowing products to be pumped directly to those facilities.

The discussions also addressed financial accountability, including efforts to clear a six-year backlog of unaudited accounts.

Mr Kombat said the Ghana Audit Service had undertaken an audit exercise to address the backlog. Management also intended to appoint an external audit firm at the refinery’s next Annual General Meeting to handle subsequent audits.

He outlined improvements to financial reporting, internal controls, and staff-related reforms, along with efforts to secure reliable crude supplies.

The IMF delegation later toured rehabilitated facilities and ongoing engineering works. Management said the work aimed to improve processing capacity, restore critical units, and strengthen TOR’s contribution to Ghana’s energy security.