TOR Targets 70% Local Fuel Supply by 2028

The Tema Oil Refinery (TOR) is targeting an expansion of its crude-processing capacity from 45,000 to 100,000 barrels per day as the government seeks to meet about 70 per cent of Ghana’s national fuel demand through local refining by 2028.

The expansion forms part of a broader strategy to strengthen domestic refining, reduce dependence on imported finished petroleum products and improve the country’s energy security.

TOR’s Managing Director, Edmond Kombat, disclosed this at the Government Accountability Series at Jubilee House on Monday, October 26, 2026.

He said President John Dramani Mahama had directed the Minister for Energy and Green Transition to work with TOR’s board and management to develop a strategic roadmap for expanding the refinery.

The directive was issued when the President commissioned the refurbished Crude Distillation Unit (CDU) on August 1, 2026.

“TOR is part of a national plan. With the refinery’s expansion from 45,000 to 100,000 barrels a day, the Government is targeting about 70 percent of national fuel demand from local refining by 2028,” Mr Kombat said.

He said the roadmap also outlined a longer-term ambition to increase the country’s refining capacity to 200,000 barrels per day through the expansion of the existing facility and the development of a new refinery.

Capacity expansion

In the immediate term, engineers from Verga Engineering are working with TOR’s technical team to complete the tie-in and commission the F-61 crude heater.

He said, the project is expected to increase the CDU’s throughput from its current level of about 28,000 barrels per stream day to between 45,000 and 55,000 barrels per stream day.

Management also plans to install a new air cooler to raise processing capacity to 60,000 barrels per stream day.

Another planned upgrade involves replacing the existing 6,500-barrel-a-day catalytic reformers with a 10,000-barrel-per-day continuous catalytic reformer.

Mr Kombat said a new 120-tonne boiler had been installed, while work was continuing on the Residue Fluid Catalytic Cracking (RFCC) unit turnaround and the Supervisory Control and Data Acquisition (SCADA) system.

Beyond these improvements, TOR is advancing plans for a new greenfield refinery, petrochemical facilities and additional storage capacity.

Under its Restoration and Legacy Projects programme for 2026 to 2029, the refinery proposes expanding the existing plant to 85,000 barrels per stream day and constructing a new refinery with a capacity of 115,000 barrels per stream day.

The two facilities would have a combined processing capacity of 200,000 barrels per stream day.

Mr Kombat said the projects would be pursued with strategic partners and in accordance with the government’s climate-compliance principles.

He said the expansion would strengthen Ghana’s capacity to meet domestic fuel demand, support industrial growth and reduce exposure to disruptions in international petroleum supply chains.

GH¢1.24bn Profit In 2025

Mr Kombat also disclosed that TOR recorded a profit before tax of GH¢1.24 billion in 2025, marking its first return to profitability in a decade.

He attributed the improvement to prudent management, stronger commercial operations and measures introduced to stabilise the refinery’s finances after years of losses and mounting liabilities.

According to him, the company’s trade and other payables fell from GH¢7.1 billion to GH¢5 billion within a year, while its receivables days declined from 1,099 to 652.

“What matters more is that trade and other payables fell from GH¢7.1 billion to GH¢5 billion in a single year, and receivable days fell from 1,099 to 652,” he stated.

He said commercial operations generated more than 36 per cent revenue growth in 2025 compared with 2024, while revenue had increased by almost 60 per cent as of September 2026.

Management had also recovered outstanding receivables, strengthened financial controls and continued upgrading the refinery’s Quality Control Laboratory.

The financial results represent a significant improvement from the position inherited in May 2025, when TOR had accumulated losses of approximately GH¢10 billion and debt estimated at US$517 million.

GH¢10bn Losses, US$517m Debt Inherited

Mr Kombat said TOR’s financial position had deteriorated significantly over the years, with prolonged operational shutdowns, unpaid statutory obligations and mounting debts to creditors.

The refinery had recorded negative equity of GH¢7.6 billion by the end of 2024.

He contrasted that position with January 2017, when the previous National Democratic Congress (NDC) administration handed over the refinery after reducing its debt from approximately US$650 million to US$300 million.

According to him, the earlier restructuring was supported by the Energy Sector Levies Act, while exposures to four banks had been settled.

However, by the time the current management assumed office in May 2025, the CDU had been inactive since April 2021 and the RFCC unit since 2019.

The refinery had also failed to file audited financial statements for six consecutive years, from 2019 to 2024.

Mr Kombat said TOR owed approximately GH¢200 million to the Ghana Revenue Authority (GRA) and GH¢20 million to the Social Security and National Insurance Trust (SSNIT), in addition to outstanding obligations to the Electricity Company of Ghana, Ghana Water Company and other creditors.

The company also had about GH¢190 million in outstanding obligations to its staff provident fund, retirees and former employees.

“By the end of 2024, TOR had negative equity of GH¢7.6 billion,” he said.

He added that the refinery had been reduced largely to renting out storage space instead of performing its core mandate of refining crude oil.

Debt Restructuring

To address the financial challenges, management has introduced a restructuring programme, commissioned an independent assessment of the refinery’s liabilities and engaged creditors on sustainable repayment arrangements.

The company has also pursued outstanding receivables, reviewed its unaudited accounts and strengthened financial controls.

Mr Kombat said TOR had since completed the outstanding audited financial statements for 2019 to 2024, as well as the 2025 accounts. The 2025 profit figure, he said, was also reported by the State Interests and Governance Authority (SIGA).

He further disclosed that the Ministry of Finance was working with TOR to consider writing off US$120 million in legacy debt owed to the government or converting the amount into equity.

Although the refinery had made progress in improving its financial position, he acknowledged that significant obligations remained.

“The team is focused to deliver even better results for 2026,” he said.