Leasing TOR to strategic partner good move – Staff union

The Senior Staff Union has expressed its approval of the decision made by the Board of the Tema Oil Refinery (TOR) and the government to lease the state refinery to a strategic partner, Torentco Asset Management. The union stated that this decision is commendable as it aims to revitalise the refinery, contribute to fuel security in the country, and stabilise the Ghana cedi.

In a statement, the union said: “It is on this basis that we, the Senior Staff Workers Union of TOR (PMSU of UNICOF), welcome the decision by the Board and Government to engage a strategic partner to revamp the Refinery and bring it back into operation, thereby contributing to fuel security in the country and stabilisation of the Ghana cedi.”

Under the agreement, Torentco Asset Management Group will lease the refinery for a period of 6 years, for a fee of $22 million. The refinery is expected to refine up to 8 million barrels annually. Additionally, the group will pay an annual rent of $1 million, along with an additional monthly rent amount of $1.067 million.

Supporting this move, the union stated: “We are confident that this initiative will also ensure job security, improved conditions of service, and bring hope to the struggling workers, many of whom are considering leaving their positions.”

The union said it considers the yet-to-be-finalised arrangements with the selected partner, TORENTCO, as the only viable option to revive the refinery, given successive governments’ hesitance to invest capital in its operations.

They find it particularly encouraging that, in addition to the rent payments, the partner will also make a capital expenditure investment of USD 22 million in the refinery’s plants and associated facilities.

“As far as we are concerned, there is currently no other concrete alternative better than the one being considered now. Therefore, we pledge our support to the board, management, and the government as they work towards finalising this agreement.”