TOR: Interim Management C’ttee struggling to raise Ghs 11 million refinery monthly bill
The Interim Management Committee (IMC) put in place to efficiently run the Tema Oil Refinery (TOR) is said to be unable to raise the requisite funds needed for the smooth operation of the state-owned refinery.
In a review paper on the nation’s energy sector, energy think tank, the Institute for Energy Policies and Research (INSTEPR), stated the IMC is currently facing challenges in regards to the payment of salaries to workers.
According to the think tank, the IMC is largely unable to largely raise the monthly Ghs 11 million needed to run the refinery as it is not generating any revenue at the moment.
“The IMC have been struggling to pay salaries since they are not generating any revenue and the rental of their LPG space only is not enough to offset the GHs 11 million monthly bill to run TOR,” remarked INSTEPR.
The IMC following the resignation of the Managing Director and Deputy Managing Director of TOR, Francis Boateng and Ato Morrison, was constituted to manage and efficiently run the refinery.
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The constitution of the IMC was despite the warnings of INSTEPR, as the think tank argued that the refinery had fundamental problems and “did not think that putting an IMC to manage the company will provide any solutions.”
Four months down the line, INTSEPR believes the IMC has not solved the serious problems at TOR which are non-availability of crude oil to refine, accrual of indebtedness and improving the financial position of the company to undertake the needed upgrades.
INSTEPR has therefore urged government to as a matter of urgency to remove the IMC and appoint substantive Board of Directors and a Managing Director.
“When an IMC is put in place to run an organization, there is a high level of uncertainty which is counterproductive for staff and business activities. We are pleading with the government as a matter of urgency to remove the IMC and appoint a substantive Board of Directors and Managing Director. Ghanaians are still paying for TOR debt recovery levy which has never been accounted for since its implementation. Government as a majority shareholder of TOR should come out with a clear policy to turn the fortunes of the refinery,” INSTEPR opined.
According to INSTEPR, the five problems that need fixing at TOR include;
- Fixing the CDU from the 23,000 barrel per stream day (bpsd) to 45,000 barrel per stream day (bpsd)
- Solving the Residue Fluid Catalytic Cracker (RFCC) problem
- Installing hydrotreating catalysts and technologies for all crude oil fractions, enabling the refinery to meet 50 ppm or lower specification.
- Constructing a gas pipeline (less than 1KM) to power the refinery. This stops the refinery from using expensive Crude oil for power.
- Putting measures and security in place to stop the theft of products.
