Govt to ring fence TOR debt to strengthen balance sheet — Energy Minister

The government has announced plans to ring-fence the debt of the Tema Oil Refinery (TOR) despite the refinery reporting a profit before tax of GH¢1.24 billion in 2025.

The Minister for Energy and Green Transition, Mr John Abdulai Jinapor, said the intervention is aimed at cleaning up the refinery’s balance sheet to support long-term financial stability and growth.

He announced this at the 18th Annual General Meeting of TOR on Tuesday in Accra.

He explained that although TOR has posted improved financial results, its debt position continues to limit its ability to access financing for expansion and day-to-day operations.

He noted that lenders are unlikely to provide funding when financial statements are weighed down by liabilities, even when operational performance shows improvement.

Mr Jinapor said the Ministry of Finance has directed a comprehensive review of energy sector agencies, to be undertaken by an external audit firm such as PwC.

He added that part of the plan under consideration is to separate debts linked to government obligations from TOR’s accounts.

According to him, isolating those liabilities would leave the refinery with a stronger financial position and improve its ability to raise capital on the market for future investments.

The Managing Director of TOR, Edmond Kombat, welcomed the proposal, describing it as an important step for sustaining the refinery’s recent turnaround.

He said removing the debt burden would improve competitiveness and allow the refinery to better fulfil its operational mandate.

He added that the refinery’s performance could be further strengthened if the planned restructuring is completed, noting that a healthier balance sheet would enhance efficiency and profitability.