TOR lease: Torentco was set up in January 2023 – ACEP

The Africa Center for Energy Policy (ACEP) has expressed apprehension regarding the ongoing lease agreement negotiation between Torentco and the Tema Oil Refinery (TOR).

The organization has cited concerns over Torentco's lack of experience in the petroleum industry and its capacity to effectively manage TOR.

According to ACEP, Torentco is a newly established company formed in January 2023, and as a result, they lack any track record in the petroleum business to manage the affairs of TOR.

Benjamin Boakye, a representative from ACEP, highlighted the accountability issues associated with a company that has no proven track record in the industry. He questioned how Torentco could be held responsible if it fails to deliver on its commitments.

“This is a new local Ghanaian company formed here in Ghana in January 2023, with no track record. If they fail to deliver, how do you hold them accountable? They don’t have any track record of dealing in petroleum businesses,” citinewsroom.com quoted him to have said in an interview with Citi TV on June, 22,2023.

He further emphasized the need for a transparent and competitive bidding process to ensure that the best option is chosen for TOR. He urged authorities to consider multiple bids and assess the merits of each proposal, rather than simply assuming that TOR is unprofitable.

“In the last year alone, I have seen many companies interested in taking over the asset [TOR]. So, open it up, be transparent about it, ask everybody who is interested, and say I want $1 million, or I don’t want money, who wants it, and what will you give me in return? And then you have bids that you can compare and choose the best out

“…you just select someone because you think TOR is not making money and just give the company out in a manner that they are doing, I think raises a lot of red flags and even raises concerns about whether the barest minimum being promised can be delivered,” he added.

Meanwhile, the Senior Staff Union of TOR has defended Torentco as the only viable option to revitalize the refinery. The union argued that successive governments have been hesitant to invest capital in TOR's operations, making Torentco the most feasible choice.

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