Minority raises concerns over proposed lease of Tema Oil Refinery to Torenco Asset

The Minority in Parliament has raised alarm bells over what they perceive as a clandestine attempt by the government to lease the Tema Oil Refinery (TOR) for a period of six years to Torenco Asset Management Company Limited.

John Jinapor, the Ranking Member of the Energy Committee of Parliament has expressed concerns regarding the company's lack of experience in the oil sector and its seemingly inadequate financial capacity to effectively manage TOR.

John Jinapor, the Ranking Member of the Energy Committee of Parliament, highlighted that TOR is a strategic asset and the sole state-owned refinery with the capability to refine approximately 45,000 barrels of oil per day.

He emphasized that if TOR is properly positioned and operated, it could result in substantial savings worth billions of cedis through import substitution.

Speaking on the matter during a parliamentary session, Mr. Jinapor voiced his concerns, stating, "Unfortunately, they have been sleeping on the job, which has led the refinery to deteriorate, failing to build on the progress achieved under the previous Mahama-led administration."

He further noted, "Details of the contract indicate Torenco is supposed to refine just about eight million barrels."

The Minority's apprehension arises from Torenco's apparent lack of a track record in the oil sector and their doubts about the company's financial capabilities.

TOR's lease agreement with a company of questionable expertise and financial strength has raised red flags within the Caucus.

YNA/OGB