TOR not collapsing under NAPO – Energy Ministry replies IES

TOR granted approval to negotiate with a strategic partner

Energy Ministry says IES statement borne out of ignorance or to tarnish Napo's image

TOR's indebtedness to be included in negotiations with strategic partner

The Ministry of Energy has debunked claims by the Institute of Energy Security (IES) that the Tema Oil Refinery (TOR) risked collapse over debt distress under the leadership of sector minister, Dr. Matthew Opoku Prempeh.

In a press statement issued by the communications department, the Ministry stated that Dr. Matthew Opoku Prempeh has since his assumption of office always engaged various stakeholders to ensure that TOR was operationalized.

Measures he put in place included the swearing-in 3-member Interim Management Committee to receive and assess viable partnerships for TOR as well as engaging the new Managing Director as TOR prepared to enter into negotiations with its strategic partner.

On the issue of TOR’s indebtedness, the statement noted that Dr. Matthew Opoku Prempeh directed that it must be included in the negotiation with the strategic partner following an approval for TOR to begin negotiations with a strategic partner.

“On 10th June 2022, the Hon Minister wrote to the Managing Director of TOR to provide guidelines and advice as the refinery prepares, together with its prospective transactional advisor, to enter into negotiations with a strategic partner.

“Among others, he directed further that TOR’s indebtedness and workers’ pension funds must be included in the negotiations with the strategic partner,” part of the statement read.

“In the said letter, the Minister [Dr. Matthew Opoku Prempeh] emphasized that whatever agreement that may be reached between the refinery and the strategic partner is not final until it has been subjected to further scrutiny by the Ministry of Energy and the Office of the President,” it added.

The statement said that based on the conduct of the minister, it was evident that he has “demonstrated clear leadership, vision and focus in working towards the revamping of TOR, and that the claims made by the IES is borne either out of ignorance of these facts or a deliberate attempt to tarnish the Minister’s image”.

IES had stated that the refinery needs government intervention in order to get it back on track to optimum operation because the facility is in debt in excess of GH¢400 million.

Read the full statement from the Ministry of Energy



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