Former GNPC CEO expresses concerns over TOR partnership deal
A former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), Alexander Kofi Mensah Mould, has raised concerns over the government’s proposed partnership deal to lease the struggling Tema Oil Refinery (TOR). Mr Mould, speaking on the popular news show Newsfile, emphasized the importance of selecting a partner who can effectively revive the state-owned refinery and ensure its continuous operation.
Mould highlighted the significant financial risks associated with interruptions in the refinery’s operations. Refineries typically run continuously for 18 months before undergoing planned shutdowns, and any disruptions within this period could result in substantial losses. In light of this, Mould stressed the need for a partner who can enable TOR to function seamlessly and minimize operational hiccups.
Acknowledging the financial challenges involved in revamping the refinery, Mould expressed doubts about the government’s ability to raise the substantial capital required for the revitalization process. He argued that private institutions must participate in the quest to secure the necessary funds, as financial institutions would be hesitant to provide financing if the government does not demonstrate its own capabilities. Mould suggested that while financial institutions could potentially assist with working capital, the bulk of the funds would need to come from equity holders.
The Ministry of Energy, however, has clarified that no contract has been signed between TOR and its prospective partner, Torentco, despite ongoing discussions. In a press release, the ministry’s spokesperson, Kofi Abrefa Afena, urged critics to verify their claims before making public statements about the Energy Minister, Dr. Matthew Opoku Prempeh. Afena emphasized the minister’s commitment to revitalizing TOR and highlighted the involvement of key state actors such as the State Interests and Governance Authority (SIGA) and the Attorney General’s Department in the partnership search.
TOR, a key player in Ghana’s energy sector, has faced operational inefficiencies and budgetary limitations for years. The refinery’s management recently announced a comprehensive review of alternative remedies to address these challenges. After careful consideration, they have identified the potential partnership with Torentco as the most promising course of action to revive the company.
The uncertainty surrounding the partnership deal for TOR reflects the complex nature of reviving a struggling state-owned refinery. The government’s ability to attract private investment and secure the necessary funding will be critical in determining the future success of TOR and its contribution to Ghana’s energy landscape.
