The management of the Tema Oil Refinery (TOR) has declared the Torentco deal as the best option to revamp the refinery and ensure its long-term sustainability.
TOR, a vital entity in Ghana’s energy sector, has been plagued with difficulties in recent times, such as operational inefficiencies, financial limitations, and the requirement for infrastructure enhancements.
Acknowledging the pressing need to tackle these challenges, TOR’s management released a statement affirming their commitment to thoroughly evaluate various potential solutions. According to the management, after careful consideration and rigorous analysis, the management team concluded that the Torentco deal offers the most promising path forward.
Meanwhile, several Civil Society Organisations (CSOs) including the Africa Center for Energy Policy (ACEP) have raised concerns about the lease agreement negotiations between Torentco and the Tema Oil Refinery (TOR).
ACEP revealed that Torentco, a newly established local Ghanaian company formed in January 2023, lacks the track record in the petroleum business and does not have the capacity to effectively take over TOR.
“This is a new local Ghanaian company formed here in Ghana in January 2023, with no track record. If they fail to deliver, how do you hold them accountable? They don’t have any track record of dealing in petroleum businesses,” Mr Boakye said in an interview.
But TOR in an official response said the proposed deal entails a strategic partnership between TOR and Torentco, with the aim of modernizing the refinery’s operations, optimizing efficiency, and enhancing its competitive position. The collaboration will involve substantial investments in infrastructure, technology upgrades, and capacity expansion.
In a presser released by TOR, “The proposed transaction serves to achieve the following: Allow TOR to move from being an annual loss-making entity to sustained positive net cash flow during the term of the lease. Demonstrate that crude oil can be processed at the refinery, achieving industry-accepted yields if managed efficiently.
Read Below the full statement by TOR:
