Tema Oil Refinery faces crisis as equity plummets by 135% to GSH 5.7 billion

The Tema Oil Refinery (TOR) faces a severe financial crisis, with equity plummeting from GH¢2.4 billion in 2019 to a deficit of GH¢5.7 billion in 2023, reflecting a 135% decline.

Persistent annual losses, averaging GH¢793 million, have worsened, coupled with systemic inefficiencies. Overstaffing is a key issue, with 750 employees far exceeding the 150 required, further straining finances.

The Centre for Environmental Management and Sustainable Energy (CEMSE) suggests three solutions: filing for bankruptcy to enable restructuring, injecting liquidity paired with debt restructuring, or engaging private sector concessions to improve efficiency while retaining state ownership.

TOR’s struggles jeopardize Ghana’s energy security and economic stability, making immediate reforms essential to prevent further financial deterioration and restore the refinery's viability.