Amidst growing concerns over the Tema Oil Refinery (TOR)-Torenco deal, the Minority in Parliament in a bold move aimed at revitalising the nation's energy sector, has asked government to reopen the procurement process to allow for the selection of a strategic partner for the management of the TOR.

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The group insists that granting a fresh chance to select a strategic partner who will spearhead the efficient management and rejuvenation of this vital national asset, is the surest way to make the company relevant.

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Speaking to journalists in Parliament, Minority Spokesperson on Energy, John Jinapor accused the current administration of sitting aloof and supervising the redundancy of the company and also insisted that urgent steps needed to be taken to revive the company.

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“The Tema Oil Refinery is a strategic asset. It is the only state refinery capable of refining about 45 thousand barrels of oil a day. If Tema Oil Refinery is well positioned it will result in millions if not billions of savings when it comes to import substitution.

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“Unfortunately, the Akufo-Addo-led government has been sleeping on the job and has left the refinery to rot having failed to continue the progress made by the Mahama-led administration,” he said.

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Further, he bemoaned the TOR-Torenco deal, stressing that it does not inure to the benefit of the country.

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“They have decided to lease the Tema Oil Refinery to Torentco Asset Management and if you read the details of the contract they are supposed to refine just about 8 million barrels. That is woefully inadequate.

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“We have become aware of attempts by the Akufo-Addo government to lease the Tema Oil Refinery for a six-year period to a company known as Torentco Asset Management company.

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“Our checks have indicated that the company has no track record when it comes to the oil sector and its balance sheet does suggest that it cannot provide the needed support for the Tema Oil Refinery,” he said.

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His comments follow the alleged leasing of the state refinery to Torentco Asset Management for at least the next six years.

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Under the agreement, the Torentco Asset Management Group will pay $1 million in annual rent and an additional rent of $1.067 million per month. The group will also refine up to 8 million barrels annually.

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Also, the board and management of TOR has justified the contract with Torentco with claims that although they had wished to deal directly with a major multinational company, TOR’s accrued debts made the refinery unattractive to many, hence the decision to settle on Torentco.

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Management released a press statement comprising three pages to provide clarification regarding the partnership. In the document, it was explained that the collaboration would enable TOR to transition from being an entity that incurs annual losses to one that consistently generates a positive net cash flow throughout the duration of the lease, among other claims.

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It also indicated that the transaction is already in its final stages of documentation and the company has an extensive list of ‘conditions precedent’ which Torentco must satisfy to demonstrate their ability to deliver all that is required in the transaction.

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“If at any point they are unable to do so, the transaction will not become effective and TOR will be left to continue with its ongoing efforts to find a solution,” the report said.

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Regardless, the deal is battling strong opposition, especially from the Minority in Parliament.

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Adding his voice to the discourse, the Yapei-Kusawgu MP maintained that another partner ought to be selected through a more rigorous process.

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“The refinery alone has seen about five different managements under the Akufo-Addo administration. It does appear like they are playing with the refinery.

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“It appears there is no seriousness when it comes to the management and revitalization of the refinery, and so we call on government to immediately halt this lease agreement and ensure that we go through a transparent process that gives everybody a fair playing field and equal opportunity so that eventually we can identify a strategic partner that will not only ensure that the refinery is put to good use but it serves the overall interest of the nation.”

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