The Tema Oil Refinery (TOR) is expected to receive a major reduction in its legacy debt burden, with the Ministry of Finance set to write off about US$120 million owed by the state-owned refinery.
TOR Managing Director, Edmond Kombat, said the proposed write-off is expected to be included in the 2026 Budget, further reducing the refinery’s outstanding obligations.
Mr. Kombat disclosed this during a working visit by Parliament’s Energy Committee to the refinery on Tuesday, September 22, 2026, where he outlined the company’s financial challenges.
He said TOR’s legacy debt currently stands at more than US$400 million following an earlier restructuring exercise.
“Currently, the Ministry of Finance is saying they are going to write off some of the debts owed to them. I think they are including it in this year’s budget. It’s about $120 million. So if that is taken out, it will also further bring the debt down,” he said.
Despite the proposed write-off, Mr. Kombat said TOR continues to face significant obligations to both private companies and government institutions.
He identified Sahara and BP among the refinery’s private creditors, noting that management is engaging them to explore ways of reducing the amounts owed, including possible discounts.
TOR also owes the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA).
Mr. Kombat appealed to Parliament’s Energy Committee to support efforts to resolve the obligations owed to the two state institutions, suggesting that the debts could be netted off.
“We also owe GNPC and VRA. Because they are state institutions, we will need your help as the Parliamentary Select Committee to help net it off,” he told the Committee.
He said while government support would help ease TOR’s financial burden, management would continue discussions with its private creditors to address the refinery’s remaining liabilities.