The Ministry of Finance is expected to write off about US$120 million of the Tema Oil Refinery’s (TOR) legacy debt as government seeks to reduce the financial burden on the state-owned refinery.
TOR Managing Director Edmond Kombat disclosed the development when Parliament’s Energy Committee visited the refinery for a working engagement on the company’s operations and financial position.
Kombat said TOR’s legacy debt currently stands at about US$400 million following an earlier restructuring exercise.
He explained that the proposed US$120 million write-off is expected to be included in the 2026 budget, which would further reduce the refinery’s outstanding obligations.
TOR, however, continues to owe both private companies and state institutions. Kombat identified Sahara and BP among its private creditors and said discussions were ongoing to explore possible discounts on amounts owed.
The refinery also has outstanding obligations to the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA).
Kombat appealed to the Energy Committee to support efforts to resolve the debts owed to the two state institutions, including through arrangements to offset the obligations.
The proposed write-off forms part of wider efforts to address TOR’s legacy financial obligations and improve the refinery’s financial position.