TOR targets West African crude amid recovery efforts
Tema Oil Refinery (TOR) is increasingly shifting its focus toward sourcing crude oil from West Africa as part of efforts to stabilise operations and drive a long-term recovery strategy, Managing Director Edmond Kombat has disclosed.
Speaking to journalists participating in the Africa Extractives Media Fellowship in Accra, Mr. Kombat said discussions are currently underway on how Ghana’s crude oil allocation can be structured to ensure the refinery receives a more reliable and sustainable supply of feedstock.
According to him, the move forms part of broader measures aimed at repositioning TOR after years of financial and operational setbacks.
The refinery has over the years battled recurring challenges, including periodic shutdowns caused by crude supply shortages, ageing infrastructure and growing debt burdens.
These difficulties have often disrupted production and raised concerns about the refinery’s long-term sustainability within Ghana’s downstream petroleum industry.
Despite several attempts at rehabilitation, TOR has struggled to maintain consistent output and profitability.
Mr. Kombat explained that current operational difficulties have also been compounded by global market developments, particularly geopolitical tensions involving Iran and the United States, which have contributed to instability in international crude oil markets.
He noted that increasing freight and shipping costs have further raised the cost of importing crude oil, making refinery operations more expensive and less predictable.
As a result, TOR is prioritising crude supplies from West Africa, which management believes offers a more dependable and cost-effective alternative.
Mr. Kombat said the strategy is expected to improve supply security while reducing the refinery’s exposure to global shipping disruptions and geopolitical uncertainties.
He maintained that management remains committed to implementing a turnaround agenda focused on restoring operational stability, improving efficiency and rebuilding confidence in TOR’s long-term future.
While acknowledging that the recovery process will not be easy, he stressed that practical steps are being taken to secure the refinery’s place within Ghana’s energy sector.
Source: Classfmonline.com/Cecil Mensah
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