Minority demands reopening of procurement process for TOR partnership
In a move that has ignited controversy and demands for transparency, Ghana’s Tema Oil Refinery (TOR) finds itself at the center of a leasing agreement controversy with Torentco Asset Management. The deal, which allegedly grants Torentco a lease for at least six years, has drawn criticism from the Minority in Parliament and raised concerns about the selection process for TOR’s strategic partner.
The management of TOR defended the decision, citing the refinery’s accumulated debts as a deterrent for major multinational companies. Torentco was deemed a viable option despite its lack of experience in the oil sector. According to TOR’s management, the partnership with Torentco promises to transform the refinery into a financially sustainable entity, capable of processing crude oil efficiently and retaining skilled staff. They emphasized that the transaction is contingent upon Torentco meeting a comprehensive list of conditions precedent.
However, the Minority Spokesperson on Energy, John Jinapor, has labeled the current deal a “rip-off.” He questioned Torentco’s ability to provide the necessary support to TOR, given its financial standing and lack of industry experience. Jinapor further argued that the lease agreement severely limits TOR’s refining capacity, potentially hindering Ghana’s import substitution efforts. The Minority demands a transparent and impartial selection process to identify a strategic partner who will serve the best interests of the nation.
Responding to the criticism, the Energy Ministry clarified that TOR and Torentco have not yet finalized any contract. Talks between the state agency and Torentco are still ongoing, and nothing has been resolved at this stage. The ministry urged individuals critical of Energy Minister Dr. Matthew Opoku Prempeh to verify their claims before making public statements. The government emphasizes its commitment to reviving TOR and asserts that key state actors, including the State Interests and Governance Authority and the Attorney General’s Department, are involved in the process of finding a credible partner.
TOR has long struggled with operational inefficiencies and budgetary constraints, making its revival a priority for Ghana’s energy sector. The refinery’s management has acknowledged the need to address these challenges and has initiated a comprehensive review of alternative remedies.
As the controversy surrounding the leasing agreement deepens, stakeholders in Ghana’s energy sector anxiously await a resolution. The fate of the Tema Oil Refinery hangs in the balance, and the government’s commitment to transparency and finding a partner aligned with the national interest will be crucial in determining the refinery’s future success.
