Editorial: TOR calls for ESLA settlements

The Ministry of Energy and Green Transition is in discussions with the Ministry of Finance to commission a comprehensive audit of state energy sector agencies’ balance sheets.

The move is with an aim of identifying and stripping out government-related debt that is constraining its ability to raise commercial financing.

Minister Responsible for Energy and Green Transition, John Abdulai Jinapor, disclosed this at the 18th annual general meeting of Tema Oil Refinery (TOR) Limited.

He stated that an impaired balance sheet makes it difficult for state energy entities to access financing and that the planned audit will help isolate liabilities arising from government’s side so they can be taken off agencies’ books.

“What we want to do is to look at the debts, particularly arising from the government side, so that we can reduce it, take them off your balance sheet”.

A cleaner balance sheet will position TOR to “go to the markets and raise finance” he noted, at a time when the cost of borrowing has fallen significantly on the back of macroeconomic stability and disinflation.

It follows an appeal made earlier in the meeting by TOR Board Chairman, Nayon Bilijo, who disclosed that the company inherited a legacy debt portfolio of approximately US$517million when the current Board was inaugurated in July 2025 – arising largely from statutory obligations, trade liabilities and unresolved claims.

He itemised the exposure as US$97million owed to government, US$58million to Ghana National Petroleum Commission (GNPC), US$78.9million to Volta River Authority (VRA), US$128million to Sahara Oil, and US$41million to BP.

Mr. Bilijo said that through the Energy Sector Levy Act (ESLA), approximately GH¢3.4billion has been collected on TOR’s behalf – of which GH¢1.47billion has already been applied against the company’s debt.

Managing Director Edmond Kombat reinforced the appeal in his own review, disclosing that TOR is still owed a minimum of GH¢1.6billion in ESLA receivables from the finance ministry.

TOR’s total debt stood at GH¢2.33billion as of December 31, 2025, down 13 percent from GH¢2.62billion in 2024 – comprising GH¢695.5million in long-term borrowings and GH¢1.632billion in short-term borrowings.

Long-term borrowings alone fell from GH¢957.2million to GH¢695.5million during the year, a reduction of 27 percent.

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