Sign in
Download Opera News App

Economy&Finance

 

Business

 

Business Management analysis

Tema Oil Refinery (TOR) Ltd is a Strategic National Asset Which Must be Protected

Tema Oil Refinery (TOR) Ltd, established in 1963 by the first president of the Republic of Ghana Dr. Kwame Nkrumah, is the only refinery which is a national pride. The refinery is a 14,000bpsd Residue Catalytic Cracker. Apart from its ability to refine crude, the facility also has the capacity to store crude oil and finished petroleum products to a total capacity of over 2.6 million barrels.

With such a capacity, it is expected that the company will successfully provide the best for Ghana including providing direct jobs to over 650 people and indirect jobs to over 10,000 individuals. Again, when in operations, the company will help to reduce prices of petroleum products since Ghana will not import finished products from external sources at a higher pricing affecting prices at the domestic market.

:Unfortunately, TOR has not achieved its intended business module or purpose fully since it became a fully owned Ghanaian company in 1977 due to several challenges. The challenges at TOR could be attributed to managerial, financial and political. The consequences of such challenges are: product losses at the company, for example, on 5th October, 2021 the Interim Management Committee, assigned to take care of the company announced to the general public that, they have commenced investigations into some product losses at TOR some of which include disappearance of 105,927 liters of Gas oil on 4th September, 2021, disappearance of 18 drums of electrical cables worth GHS10.4 million, etc. The net effect is debt compounded on the company termed as the TOR Legacy Debt.

Because of its strategic nature, every effort should be made to save the company. Some have argued that the company should be privatized to a strategic investor due to the challenges it is going through. Though they may mean well, privatizing TOR is not a solution to the problems. Rather, there is the need to put in place mechanisms that will set the company on the path which focuses on doing business for profit by ensuring that a good management team is in place at the company to steer affairs. It must be understood that the problems at TOR do not exist because the company is owned by government. They exist because enough efforts has not been made to solve them and offloading the company to a private investor is not the solution.

Again, the company can do well if its operations are not politicized. Government must do well to take away any political interference in the operations of the company so that the objectives for which the company was established will be achieved.

As a national asset, the state should take steps to eliminate all the challenges at the company including prosecuting individuals found culpable in the mismanagement of the company to serve as a deterrent to others. Government must inject new capital into the operations of the company to enable it begin its refinery operations as it use to be. And government must not interfere in the activities of the company so it will be accountable to the general public for the benefit of the state.

TOR is a business entity and must be treated as such and with the discovery of oil in Ghana, it is expected that the company expand its infrastructure to provide reliable petroleum products for the Ghanaian markets. The benefits the company can bring to Ghana cannot be over emphasized therefore, it is appropriate to revive the company and protect it for collective good.

Content created and supplied by: NewsBox (via Opera News )

Ghana Ltd Republic of Ghana TOR Tema Oil Refinery

COMMENTS

Load app to read more comments