Tema Oil Refinery Resurgence: ‘Kombat Effect’ Signals New Hope for TOR Recovery

The Tema Oil Refinery resurgence has gained fresh momentum following the appointment of Edmund Kombat as Managing Director, with a new press statement describing the ongoing transformation as the “Kombat Effect.”

According to the statement issued by Emmanuel Duah, Executive Director of Radiant Media and Intelligence Hub, the country’s only state-owned refinery is gradually recovering after more than a decade of financial and operational difficulties that led many to question its future.

The statement said TOR had long been regarded as a “white elephant” due to a combination of mounting debt, technical failures, declining staff morale and repeated government interventions. It noted that the refinery accumulated debts exceeding US$400 million, while its key Crude Distillation Unit (CDU) became non-operational, severely limiting refining activities.

It added that years of inadequate maintenance, an inability to secure crude oil because of financial constraints and growing dependence on imported refined petroleum products significantly weakened TOR’s commercial position. The refinery also suffered reputational setbacks following past controversies, including the Asante Berko “Holy Rain” case, which affected investor confidence.

By 2023, the statement said, TOR was facing severe operational constraints, prompting calls for privatisation, restructuring or even closure.

New leadership driving Tema Oil Refinery resurgence

The statement credits President John Dramani Mahama’s decision to appoint Edmund Kombat as Managing Director in 2025 as a turning point for the refinery.

According to the release, Kombat introduced a recovery strategy centred on three priorities: Restart, Restructure and Restore Confidence.

As part of the operational recovery plan, management has begun efforts to restore the refinery’s core processing capacity by undertaking major rehabilitation works on the Crude Distillation Unit.

The statement also revealed that TOR is exploring strategic processing arrangements, including tolling partnerships, to improve operations without depending entirely on upfront crude oil purchases.

Financial restructuring and staff morale

The press statement said management is engaging both government and creditors to address TOR’s long-standing liabilities and establish a more sustainable financial structure.

It explained that the objective is to separate legacy debt from future operations and reposition the refinery as a commercially viable enterprise.

Management has also introduced measures aimed at strengthening transparency, improving internal accountability systems and re-engaging experienced technical personnel considered essential to the refinery’s recovery.

According to the statement, these interventions have boosted employee morale, with workers expressing renewed optimism about the refinery’s future.

Strategic partnerships under consideration

The statement disclosed that discussions are ongoing with prospective private sector partners on possible lease arrangements and Public-Private Partnership (PPP) models.

It stressed that these engagements are intended to attract investment, technology and technical expertise while ensuring Ghana retains ownership of the refinery.

According to the statement, the objective is to restore TOR to full operational capacity without relinquishing its status as a strategic national asset.

Why the Tema Oil Refinery resurgence matters

The statement argues that reviving TOR extends beyond petroleum refining and is critical to Ghana’s economic stability and national security.

It stated that a fully operational refinery would strengthen Ghana’s energy security by reducing reliance on imported refined petroleum products, protect the country from global supply disruptions and market volatility, preserve hundreds of direct jobs and sustain thousands more across the downstream petroleum industry.

The statement further noted that restoring TOR would generate additional government revenue through taxes and levies, reduce pressure on foreign exchange reserves and strengthen Ghana’s strategic position amid increasing regional security concerns.

It warned that allowing the refinery to collapse would leave Ghana entirely dependent on imported petroleum products, exposing the country to significant supply and pricing vulnerabilities.

Challenges remain despite progress.

Despite the reported progress, the statement acknowledged that significant challenges remain before TOR can fully recover.

Among the issues identified are the refinery’s legacy debt, the substantial capital required to rehabilitate the Crude Distillation Unit and modernise refinery infrastructure, the need for reliable crude oil supply arrangements and continued policy support from government.

The statement also emphasised the importance of maintaining strong governance, transparency and accountability measures to prevent the recurrence of the mismanagement and corruption that contributed to the refinery’s previous decline.

Call for national support.

The statement concluded that although the refinery’s recovery is still ongoing, the current leadership has created a clear direction and renewed momentum for revival.

It described the “Kombat Effect” as evidence that effective leadership, strategic planning and political commitment can restore distressed national assets.

The release called on government, industry stakeholders and the Ghanaian public to support the Tema Oil Refinery resurgence through sound policy implementation, investment and accountability.

“A nation that cannot refine its own petroleum resources remains vulnerable in managing its energy future,” the statement said, adding that TOR is not merely a refinery but a national strategic asset.