The concerned staff are alleging the formation of two separate companies that still have Torentco as part of its shareholders.

On Tuesday, October 3, 2023, the workers who are members of the General Transport, Petroleum and Chemical Workers Union Division at TOR, met the Energy Minister over their concerns.

The union has in the past been kicking against the  Torentco-TOR deal demanding the reassessment of Torentco over claims that Torentco does not have the expertise to take over TOR.

They now allege that, these two newly formed entities – Tema Energy and Processing Ltd and TOR Workers Charity Trust LBG is part of a grand scheme by management of the TOR to use in carrying out its lease agreement with Torentco.

Although the explanation given them is that the move is to pursue workers’ interest, the union members say the right thing must done to revive TOR.

“We are not against any company taking over TOR. We are saying the company that is coming to take over TOR should be of good track record; it must be capable and credible but not some group of people who will go and sit and form a company to take over the refinery and make money -that we will resist. TOR is for Ghanaians and we are supposed to be given a fair deal. So, with this new companies, we will resist with our last blood to ensure that right thing is done”, said Bernard Owusu, National Chairman of the General Transport, Petroleum and Chemical Workers Union.

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While negotiations are underway, the Ministry emphasizes that nothing has been finalized. In a press statement issued on Sunday, June 25, the Ministry’s spokesperson, Kofi Abrefa Afena, urged critics of the sector minister, Dr. Matthew Opoku Prempeh, to verify their allegations before making them public.

The Ministry affirms the Energy Minister’s unwavering commitment to revitalizing TOR in alignment with the President’s vision.

Mr. Abrefa Afena expressed the government’s determination to find strategic partners for the refinery.

This endeavor involves key state actors such as the State Interests and Governance Authority (SIGA) and the Attorney General’s Department.

TOR, a vital entity in Ghana’s energy sector, has encountered significant challenges in recent years, including operational inefficiencies, financial constraints, and the need for infrastructure upgrades.

Recognizing the urgency to address these issues, TOR’s management has undertaken a comprehensive evaluation of potential solutions.

After careful consideration and rigorous analysis, the management team has determined that the Torentco deal offers the most promising path forward.

However, concerns have been raised by various Civil Society Organizations (CSOs), including the Africa Center for Energy Policy (ACEP), regarding the lease agreement negotiations between Torentco and TOR.

ACEP highlights that Torentco, a Ghanaian company established in January 2023, lacks a track record in the petroleum industry and does not possess the necessary capacity to effectively take over TOR.

ACEP’s Executive Director, Ben Boakye, argues that holding Torentco accountable would be challenging if they fail to deliver due to their lack of experience in petroleum businesses.

TOR, in an official response, states that the proposed deal entails a strategic partnership between TOR and Torentco with the aim of modernizing the refinery’s operations, enhancing efficiency, and improving its competitive position.

The collaboration will involve substantial investments in infrastructure, technology upgrades, and capacity expansion.

Additionally, TOR’s management emphasizes that the Torentco deal will secure a reliable supply of crude oil, a critical input for the refinery’s operations.

TOR further asserts that the Torentco deal will bring much-needed financial stability by leveraging Torentco’s financial resources and access to capital markets.

This funding will support infrastructure upgrades, maintenance, working capital, and ensure uninterrupted operations and improved financial performance.

Moreover, the collaboration aims to retain talented engineers within the company.

The management of TOR believes that the Torentco deal represents a transformative opportunity for the refinery and Ghana’s energy sector as a whole.

They are confident that this strategic partnership will reposition TOR as a vital contributor to the country’s economic growth, job creation, and energy self-sufficiency.

The proposed transaction aims to achieve sustained positive net cash flow for TOR, demonstrate efficient processing of crude oil at the refinery, and achieve industry-accepted yields.

Civil society organizations (CSOs) expressed their objection to the partnership, citing its opaque nature and lack of optimal value for TOR.

They also claimed that the partnership would render the refinery obsolete after its six-year tenure.

In response to these concerns, the board and management of TOR emphasized that while they value the CSOs’ input, there is no cause for alarm.

In a comprehensive three-page report endorsed by the board and management, it was acknowledged that TOR had initially aimed to establish a direct collaboration with a major multinational company.

However, due to the accumulated debts of the refinery, it had become unappealing to potential partners of that scale.

Consequently, the decision was made to engage with Torentco.

The board and management further explained that the partnership would enable TOR to transition from being a perennially loss-making entity to a financially sustainable operation, generating positive net cash flow throughout the lease period.

They expressed confidence that, with efficient management, the refinery could process crude oil to achieve industry-accepted yields.

Moreover, the partnership would address the issue of skilled staff leaving for opportunities in the Middle East and other parts of the world.

By creating new prospects domestically, TOR aims to stem the exodus and retain talent within the country.

TOR’s board and management assured stakeholders that the transaction is in its final stages of documentation. They revealed that an extensive list of “conditions precedent” has been established, which Torentco must fulfill to demonstrate their capacity to meet all the requirements of the transaction.

TOR stated, “If at any point they are unable to do so, the transaction will not become effective, and TOR will continue its ongoing efforts to find an alternative solution.”

In conclusion, the board and management of Tema Oil Refinery addressed the concerns surrounding the TOR-Torentco partnership.

They emphasized the potential benefits of the collaboration, highlighting TOR’s need to adapt to the current financial constraints and optimize its operations for long-term viability.

Below is the full statement: