Tema Oil Refinery Cuts Debt to $300m as Ghana Plan Expansion

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Tema Oil Refinery says it has reduced its debt burden from about US$650 million to US$300 million as management works to restore the state-owned refinery to financial and operational stability.

ACCRA, Ghana — October 26, 2026 — Tema Oil Refinery (TOR) has significantly reduced its debt burden and is preparing for a major expansion of its crude-processing capacity as Ghana intensifies efforts to strengthen domestic fuel production.

TOR Managing Director Edmond Kombat said the refinery’s debt had been reduced to about US$300 million, down from approximately US$650 million, following a restructuring programme supported by the Energy Sector Levies Act.

The announcement came as an International Monetary Fund (IMF) delegation engaged TOR management over the refinery’s recovery programme, inherited liabilities and plans for long-term financial sustainability.

TOR debt falls as refinery begins recovery

According to Kombat, TOR inherited a severely weakened financial position when the current management assumed office in May 2025.

The refinery’s debt stood at approximately US$517 million, while accumulated losses were estimated at about GH¢10 billion. TOR also recorded negative equity of approximately GH¢7.6 billion by the end of 2024.

The refinery had also faced prolonged operational difficulties, with its Crude Distillation Unit (CDU) out of operation for several years and other major processing facilities requiring extensive maintenance.

Management says the turnaround programme has since focused on restoring the refinery’s core operations, improving financial controls and rebuilding confidence among commercial partners.

Tema Oil Refinery returns to crude processing

TOR says its rehabilitation programme has enabled the refinery to resume crude processing after years of limited operations.

The company’s current throughput is approximately 28,000 barrels per stream day, with engineers working to increase capacity to between 45,000 and 55,000 barrels per day.

The refinery has processed approximately five million barrels of crude, including crude sourced from Ghanaian oil fields.

Management says the objective is not simply to restart TOR but to build a commercially sustainable refinery capable of playing a much larger role in Ghana’s energy sector.

Ghana targets 70% local fuel supply by 2028

The government is also pursuing a much more ambitious expansion of TOR.

Management says President John Dramani Mahama has directed the Energy and Green Transition Ministry, the TOR board and management to develop a strategic roadmap aimed at eventually increasing processing capacity to 100,000 barrels per day.

The government has set a broader target of meeting approximately 70% of Ghana’s national fuel demand through local refining by 2028.

In the longer term, the plan envisages even greater processing capacity as Ghana seeks to reduce its dependence on imported refined petroleum products.

TOR considers Ghana Stock Exchange listing

As part of efforts to raise capital and strengthen the refinery’s finances, TOR is also considering a potential listing on the Ghana Stock Exchange.

Kombat said a listing could provide access to new investment and capital needed to support the refinery’s recovery and expansion.

The proposal remains under consideration and is not yet a confirmed stock-market listing.

Management is also engaging government over approximately US$120 million owed to the state as part of broader discussions on restructuring historical obligations and reconciling financial positions between TOR and other state institutions.

IMF examines TOR’s financial position

The developments come as an IMF delegation led by Ghana Resident Representative Dr Adrian Alter visited TOR.

The IMF engagement forms part of the Fund’s broader review of Ghana’s economic programme and its discussions with selected state-owned enterprises.

The team examined TOR’s rehabilitation work, financial position, inherited liabilities and plans to achieve long-term sustainability.

The IMF’s engagement is significant because the financial health of major state-owned enterprises can affect Ghana’s wider public finances.

Refining Ghanaian crude at home

TOR management has also placed strong emphasis on processing Ghanaian crude domestically.

Kombat said refining Ghanaian crude in Ghana would allow more value from the country’s petroleum resources to remain within the domestic economy.

The refinery has already processed crude from Ghanaian oil fields, including Jubilee crude, as part of its renewed operations.

For Ghana, increasing domestic refining could potentially support energy security, create industrial opportunities and reduce some exposure to international refined-fuel markets.

A refinery still facing major challenges

Despite the progress announced by management, TOR’s turnaround remains a work in progress.

The refinery is still dealing with legacy debt, infrastructure requirements and the need to restore additional processing units.

Management has acknowledged that the work is not complete and that further investment will be required to reach the refinery’s full potential.

The immediate challenge is therefore to convert the recent operational improvements into sustained profitability while securing the capital required for expansion.

Why TOR matters to Ghana’s economy

The recovery of Tema Oil Refinery has implications beyond the petroleum industry.

A financially stable and commercially viable refinery could strengthen Ghana’s energy security, support local industries and retain more value from the country’s petroleum resources.

It could also reduce pressure associated with importing finished petroleum products while creating opportunities for local engineering, logistics and downstream businesses.

The proposed expansion therefore represents a broader test of whether Ghana can transform a historically troubled state-owned enterprise into a sustainable commercial operation.

For now, TOR’s reduced debt, renewed crude processing and proposed expansion provide a significant development — but the success of the turnaround will ultimately depend on whether the refinery can maintain operations, manage its remaining liabilities and attract sufficient capital for the next stage of growth.