By the close of December 2024, the financial burden on Tema Oil Refinery (TOR) had reached a staggering peak of $517 million. This is akin to a family that has had to continually borrow money to keep their house running, but the bills have piled up to an intimidating amount.
Edmond Kombat, the man at the helm of TOR, shared this information at an Energy Committee retreat held on June 22, 2025. This debt mountain has been accumulating due to trade debt, legacy debt from crude oil supply, and even grants from the finance ministry, which had to be reclassified as debt due to an agreement with the International Monetary Fund (IMF).
As a result of this financial situation, the central government has had to hold on to a significant portion of TOR’s share in the Energy Sector Levy to pay off the debt. This can be compared to a parent dipping into their child’s allowance to pay off their credit card bills.
The company is currently in the process of revalidating and renegotiating parts of the debt, much like when someone tries to consolidate or reschedule their loans to make them more manageable.
However, the problems don’t stop there. It’s been six years since most of the TOR plants have been operational. This is like a factory that has remained closed for years, its machinery collecting dust. “Since 2019, the RFCC has not run, and since 2021, the CDU has also not run,” Kombat reported.
Despite these challenges, the new management seems hopeful. After assessing the plant, they found it to be in good shape, with just a few technical tweaks required to get it back up and running.
In another surprising twist, the company’s financial records haven’t been audited since 2019. The management is now focusing on bringing in external auditors to scrutinize the books for the past six years. This is as crucial as a health-checkup after years of neglecting one’s well-being.
Meanwhile, to boost morale and performance, staff restructuring is in progress. The management has been addressing employee concerns and grievances. Over 300 petitions have been reviewed, and long-overdue promotions have been granted.
Despite the uphill climb, the TOR management remains optimistic, with plans to resume operations by October 2025. It’s a tough road ahead, but with careful planning and execution, they hope to turn the financial tide.
