For more than a decade, the Tema Oil Refinery (TOR), Ghana’s only state-owned refinery, was widely described as a “white elephant” due to mounting challenges, including a debt burden exceeding US$400 million, operational difficulties, a non-functional Crude Distillation Unit (CDU), declining staff morale, and repeated government interventions.
Many had concluded that the refinery’s future was uncertain, with calls for privatisation, restructuring, or outright closure.
However, a new chapter appears to be emerging following the appointment of the current leadership led by Edmund Kombat.
Under the current leadership, there is a renewed drive to restart operations, restructure the institution, and restore confidence in Ghana’s strategic petroleum asset.
A Decade of decline
TOR’s challenges have been multifaceted, extending beyond technical issues to include financial, managerial, and policy-related difficulties.
The refinery struggled under a heavy debt burden that affected its ability to secure crude oil supplies.
Years of inadequate maintenance contributed to the shutdown of the Crude Distillation Unit (CDU), while increased reliance on imported finished petroleum products weakened its commercial position.
The refinery also suffered reputational damage from past controversies, including the Asante Berko “Holy Rain” case, which affected investor confidence.
By 2023, TOR was facing severe operational constraints and required urgent intervention to survive.
The Kombat Effect: a new direction
Upon assuming office, Edmund Kombat outlined a clear vision built around three priorities: Restart, Restructure, and Restore Confidence.
Key initiatives under his leadership include:
1. Technical Restart and Operational Recovery
Efforts are underway to restore the refinery’s core processing capacity, including major works aimed at bringing the Crude Distillation Unit back into operation.
The refinery is also exploring strategic processing arrangements, including tolling partnerships, to improve operations without relying solely on upfront crude purchases.
2. Financial Restructuring
Management is engaging creditors and government to address TOR’s historical liabilities and create a cleaner financial structure that will allow the refinery to operate sustainably.
The objective is to separate legacy challenges from future operations and position TOR as a commercially viable entity.
3. Improved Staff Morale and Accountability
Management has embarked on measures aimed at improving transparency, strengthening internal systems, and re-engaging technical personnel whose expertise remains critical to the refinery’s recovery.
Workers have expressed renewed optimism and a sense of hope regarding TOR’s future.
4. Strategic Partnerships
Discussions are ongoing with potential private sector partners on possible lease arrangements or Public-Private Partnership (PPP) models.
The objective is not to relinquish Ghana’s ownership of TOR, but to attract the capital, technology, and expertise required to restore the refinery to full strength.
TOR’s revival: a national security imperative
The revival of TOR goes beyond fuel production.
It represents a critical component of Ghana’s economic and national security framework.
A fully operational refinery would:
Strengthen Ghana’s energy security by reducing dependence on imported refined petroleum products.
Protect the country from external supply disruptions and global market volatility.
Preserve hundreds of direct jobs and support thousands of livelihoods across the downstream petroleum sector.
Generate additional economic value through taxes, levies, and reduced foreign exchange pressure.
Enhance Ghana’s strategic position at a time of growing regional security concerns.
Allowing TOR to collapse would leave Ghana completely dependent on imported petroleum products, creating significant vulnerabilities.
While progress has been recorded, the road to full recovery remains challenging.
Major issues requiring attention include: Legacy debt: Existing liabilities continue to affect investor confidence.
Capital requirements: Significant investment is needed for CDU rehabilitation and refinery upgrades.
Policy support: Sustainable crude supply arrangements and a supportive regulatory environment are essential.
Governance: Strong accountability measures must be maintained to prevent the mismanagement and corruption that contributed to TOR’s decline.
Conclusion: supporting the resurgence
The resurgence of the Tema Oil Refinery does not mean all challenges have been resolved.
However, for the first time in many years, there appears to be a clear direction, renewed leadership, and growing momentum toward recovery.
The “Kombat Effect” demonstrates that with effective management, strategic planning, and the necessary political commitment, even distressed national assets can be restored.
The writer is a petroleum industry specialist
