Tema Oil Refinery: Ghana Stock Exchange Listing Explored for Investment

• The Tema Oil Refinery (TOR) is considering a listing on the Ghana Stock Exchange to raise fresh investment capital.
• TOR is actively restructuring an inherited debt of approximately $517 million, including $120 million owed to the government.
• The refinery's management has operated on internally generated funds since May 2025 and reported a profit last year.
• TOR is addressing a six-year backlog of unaudited accounts, with the Ghana Audit Service conducting an audit and plans for an external auditor.
• Domestic refining is seen as crucial for strengthening Ghana's petroleum supplies and reducing exposure to international market volatility.

The Tema Oil Refinery (TOR) is actively exploring a potential listing on the Ghana Stock Exchange (GSE) as a strategic move to attract new investment capital.

The Tema Oil Refinery (TOR) is actively exploring a potential listing on the Ghana Stock Exchange (GSE) as a strategic move to attract new investment capital. This initiative comes as the state-owned enterprise simultaneously grapples with the significant challenge of restructuring an inherited debt burden totaling approximately $517 million. The refinery's Managing Director, Edmond Kombat, revealed these plans during a recent visit by a delegation from the International Monetary Fund (IMF), led by Dr. Adrian Alter, the Fund's Resident Representative in Ghana.

The IMF delegation's visit was part of a broader engagement with Ghanaian government authorities and selected state-owned enterprises, aimed at assessing ongoing rehabilitation efforts at TOR and understanding strategies to restore both sustained operations and financial stability. Mr. Kombat articulated that a public listing would enable Ghanaian institutions and other investors to acquire shares in TOR, thereby injecting crucial capital necessary for the refinery's operational needs and future expansion projects. He emphasized that since the current management assumed leadership in May 2025, the refinery has operated solely on internally generated funds, without any direct financial support from the government.

Of the substantial $517 million debt inherited by TOR, roughly $120 million is owed directly to the Ghanaian government. Discussions are currently underway to restructure this specific obligation and to reconcile historical financial commitments between TOR and the state. Furthermore, the refinery is engaging with other state institutions regarding outstanding financial obligations, seeking to establish clear financial positions and explore potential offsetting arrangements for amounts owed between the respective parties. These efforts are central to the comprehensive TOR debt restructuring Ghana is undertaking.

Despite the considerable debt challenges, Mr. Kombat reported that TOR achieved profitability in the preceding year. He expressed optimism that a combination of improving macroeconomic conditions and ongoing operational reforms would contribute to sustaining this positive financial trajectory. The refinery has processed approximately five million barrels of crude oil, with about two million barrels sourced from Ghana's domestic oil fields, including supplies from the Jubilee field via Vitol, which were fully paid for, and allocations from the Ghana National Petroleum Corporation (GNPC).

The remaining crude supply was procured from international sources. Mr. Kombat conveyed hopes that GNPC would make its full crude allocation available to TOR for refining by the following year, which would significantly enhance feedstock availability and support more consistent operational schedules. He underscored the strategic importance of domestic refining, highlighting its potential to bolster petroleum supplies within Ghana and reduce the nation's vulnerability to disruptions in international markets.

Beyond its core refining activities, TOR is also exploring additional revenue streams by leveraging its existing infrastructure. This includes its substantial storage capacity of approximately one million metric tonnes, its extensive distribution network, and its petroleum-testing laboratory. The refinery's infrastructure also features connections to eight privately operated depots, facilitating the direct pumping of refined products to these facilities, thereby maximizing efficiency and potential earnings.

A critical aspect of TOR's reform agenda involves addressing long-standing issues of financial accountability, particularly a six-year backlog of unaudited accounts. Mr. Kombat confirmed that the Ghana Audit Service has initiated an audit exercise to clear this backlog, signaling a concerted effort to improve transparency and compliance. Looking ahead, management intends to propose the appointment of an external audit firm at the refinery's next Annual General Meeting to handle all subsequent audits, ensuring ongoing financial oversight.

These measures are part of broader internal reforms encompassing improvements to financial reporting, strengthening internal controls, and implementing staff-related changes. The commitment to resolving the Tema Oil Refinery unaudited accounts backlog is a significant step towards enhancing corporate governance, which is crucial for any potential Ghana Stock Exchange IPO requirements. This focus on robust financial management and transparency is vital for attracting the fresh investment sought through a public listing and for positioning TOR as a more reliable and accountable state-owned enterprise within Ghana's energy sector. The IMF Ghana state-owned enterprises discussions underscore the importance of such reforms for the nation's economic stability.

Lawyers advising on corporate finance, capital markets, or M&A in Ghana should note the potential for a significant IPO from a major state-owned enterprise, requiring expertise in regulatory compliance, due diligence, and debt restructuring. Compliance officers should monitor the resolution of TOR's unaudited accounts backlog as a precedent for governance in other SOEs.

Source: Original reporting via Abubakar Ibrahim