The management and board members of Tema Oil Refinery have responded to the concerns raised by civil society organizations regarding the TOR-Torentco partnership deal.
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: