Tema Oil Refinery (TOR) says the Institute of Energy Security's (IES) cluelessness is destroying its business model it has struggled over the years to build and maintain with their strategic partners with flawed assumptions.

TOR has refuted claims by the IES that the company has incurred a $24 million loss as a result of the drastic reduction in the prices of crude oil on the international market.

A rejoinder signed by the Public Relations Manager at TOR, Dr Kingsley Antwi-Boasiako stated, "We take this opportunity to advise IES not to jeopardize the long term business model between TOR and our strategic partners with stories that cannot be substantiated."

He noted that the claims by IES “is based on a flawed assumption that there is a direct correlation between the drop in global prices and the price TOR products on the local market."

Mr. Antwi-Boasiako indicated that a fall in the international crude oil price does not necessarily correspond to an equal degree of the fall in the prices of petroleum products.

The projection by IES thereby does not hold, he posited, "Management of Tema Oil Refinery refutes the various allegations which were contained in the said IES article."

Read the full rejoinder below:

RE: TOR PLUNGED FURTHER INTO TROUBLED WATERS

CLUELESS IES ONLY SEEKS TO COLLAPSE TOR

1.The assertion that the company has incurred a $24 million loss as a result of the drastic reduction in the prices of crude oil on the international market is false. It is based on a flawed assumption that there is a direct correlation between the drop in global prices and the price TOR products on the local market. For the avoidance of doubt, a fall in the international crude oil price does not necessarily correspond to an equal degree of the fall in the prices of petroleum products. The projection by IES thereby does not hold.

2. IES’s additional claim that TOR did not employ suitable techniques in managing the risk of a fall in price is untrue. Whereas the volatile nature of crude oil prices lies beyond the control of Tema Oil Refinery, any potential price risk arising from such volatility is however mitigated in a special arrangement with our suppliers.

3. The additional claim that there is no sight of the next parcel of crude for TOR is equally false. IES operates outside TOR and cannot therefore be privy to all of TOR’s cargo dealing. Expected

Receipts of TOR’s cargo are in accordance with program and should lead to a receipt of the next parcel of crude oil this month.

4. Contrary to the claims by IES, we wish to state that the interest of local off-takers in our products is paramount. TOR has sold some of the already refined products to both local and foreign entities. Additionally, pipeline efforts for the export of TOR products remain unchanged.

Management of Tema Oil Refinery refutes the various allegations which were contained in the said IES article. We take this opportunity to advise IES not to jeopardize the long term business model between TOR and our strategic partners with stories that cannot be substantiated.

Signed

Dr Kingsley Antwi-Boasiako

Public Relation Manager

Tema Oil Refinery