Ghana gov’t reduces TOR’s GH¢1.6b debt to GH¢610m – Energy Minister
The debt of Tema Oil Refinery (TOR), Ghana’s only oil refiner, has been reduced to GH¢610 million from the December 2008 total of GH¢1.6 billion, the Energy Ministry said September 6, 2012.
The refiner’s debt in books rose to GH¢1.7 billion at the end of 2009 but the government made an initial payment of GH¢445 million in 2010 to reduce the indebtedness of the state-run company.
Briefing the press in Accra, Energy Minister Dr Joe Oteng-Adjei said government again, in March 2011 restructured the TOR debt by “securitizing the debt through the issue of Medium Term Government Bonds”.
“To date government has made payment on behalf of Tema Oil Refinery to the tune of GH¢1, 137,832,874.37. Total outstanding debt is GH¢610,928,790.72,” Dr Oteng-Adjei said during the Meet-The-Press series.
In the quest to find a lasting solution to the perennial financial challenges of TOR, the Minister indicated that a technical, operational and financial diagnostic review of TOR was commissioned and the audit has been completed.
The recommendations will be implemented to ensure that TOR operates efficiently and on financially sound basis, he added.
The 45,000 barrels-per-day oil refiner has recently been facing rampant shut downs.
Last Wednesday August 29, 2012, two sources told the Reuters news agency that TOR has been shut down due to the breakdown of critical equipment.
According to the report, they (sources) said both the main crude distillation unit and the residual fuel catalytic converter were shut down about a month ago.
“The changers (a component of the plant) were blocked and needed to be replaced but lack of funds has delayed the work,” one of the sources told Reuters.
TOR on May 23, 2012 was again shutdown.
The refiner in late May 2012 announced it has secured some $900 million from BNP Paribas and Standard Chartered to help clear some debts.
The plants at TOR are still shutdown but the government has given an assurance that they will be restarted in two weeks time with a provision of a $30 million financing.
Ghana currently is experiencing erratic power cuts with most of the cities put on a load shedding schedule due to damages made by a vessel on the West Africa gas pipeline in Togo affecting supply to the country.
By Ekow Quandzie