Finance Ministry to Write Off $120m of TOR’s Debt
Finance Ministry to Write Off $120m of TOR’s Legacy Debt – MD
The Managing Director Edmond Kombat of The Tema Oil Refinery (TOR) has revealed that the Finance Ministry plans to write off approximately US$120 million of the state-owned refinery’s legacy debt, a move expected to ease financial pressure significantly.
Kombat shared the update during a working visit by Parliament’s Energy Committee to the refinery. According to him, TOR’s legacy debt currently sits at around US$400 million, following an earlier round of debt restructuring.
We do have legacy debts on our books. When we did the restructuring, the first phase brought it down to about $400-and-something million, he explained.
Kombat said the Finance Ministry intends to formally include this proposed write-off in the 2026 budget, which would translate into a real reduction in what TOR owes.
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.
Even with this relief on the horizon, Kombat was clear that TOR still carries substantial debt to other parties, both private companies and fellow state institutions.
On the private side, he named Sahara and BP as key creditors, noting that management is actively in talks with both companies to explore possible reductions in what’s owed.
Beyond that, Kombat revealed that TOR also owes money to the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA) two institutions that, being state-owned themselves, present a slightly different kind of challenge.
Because GNPC and VRA are government institutions, Kombat turned directly to the Energy Committee for support in resolving those particular obligations. 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 committee members.
He specifically appealed for the Committee’s assistance in settling these inter-agency debts, while negotiations with TOR’s private creditors continue on a separate track.
Kombat believes this combination of the proposed write-off and ongoing debt negotiations could meaningfully strengthen TOR’s financial position, helping lift some of the weight that years of accumulated legacy obligations have placed on the refinery.
