Finance Ministry to Write Off $120m of TOR’s Legacy Debt

The Ministry of Finance is expected to write off approximately US$120 million of the Tema Oil Refinery’s (TOR) legacy debt as part of efforts to reduce the financial burden on the state-owned refinery.

TOR’s Managing Director, Edmond Kombat, disclosed this during a working visit by Parliament’s Energy Committee.

He said the refinery’s outstanding legacy obligations currently stood at about US$400 million following an initial 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.

According to him, the Ministry of Finance intends to include the debt write-off in the 2026 budget, which would further reduce TOR’s outstanding obligations.

“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.

Kombat, however, noted that TOR continued to face significant obligations to both private companies and state institutions.

He identified Sahara and BP among the refinery’s private creditors, explaining that negotiations were ongoing to explore possible discounts on the amounts owed.

“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 appealed to Parliament’s Energy Committee to support efforts to resolve the debts owed to the Ghana National Petroleum Corporation (GNPC) and the Volta River Authority (VRA), while management continues discussions with private creditors.

Source: CNR

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