Tema Oil Refinery (TOR), Ghana’s leading refinery, is currently experiencing turmoil following the removal of its Managing Director by the presidency.
The newly appointed Managing Director is a retired officer who was previously interdicted twice during his tenure with the institution.
Despite his usual practice of not working on Fridays, Jerry Kofi Hinson went to the refinery on August 11, 2023, after being dismissed to pack up his belongings.
Following the dismissal, Daniel Appiah, the former Finance Director, has been named as the acting Managing Director. He is set to assume his new role on August 14, amidst increasing tension at the state-owned facility.
Bernard Owusu, the National Chairman of the General Transport Petroleum and Chemical Workers Union, expressed his dissatisfaction with Appiah’s appointment via social media, describing him as unfit for the role.
Energynewafrica.com reported that Appiah retired about two months prior, having served at the refinery for many years. The recent controversy surrounding TOR was sparked by an attempt to lease the refinery to a new private entity named Torentco Assets Management. This firm, established only six months ago, lacks a proven track record in the oil and gas sector.
The proposed agreement entails leasing TOR’s primary production assets to Torentco for a six-year period. In exchange for controlling TOR’s core refining operations and refining up to 8 million barrels of oil annually, Torentco would pay an annual rent of US$1 million.
However, think tanks in the energy sector criticized the deal, arguing that it was unfavorable for the country.
Despite the objections raised by these think tanks and social commentators, individuals within the government persisted in pushing for the deal’s approval.
Reports indicated that Jerry Kofi Hinson resisted signing the deal until Torentco fulfilled all legal requirements. Despite facing pressure, Hinson remained steadfast in ensuring that the proper procedures were followed. This stance conflicted with certain figures within the President’s inner circle who had advocated for his dismissal.
Sources within the refinery revealed that the staff were unhappy with the appointment of Daniel Appiah due to his previous interdictions during the administrations of both Awuah Darko and Akufo-Addo.
Concerns were raised by organizations such as the Africa Center for Energy Policy (ACEP) and IMANI Ghana regarding the lease agreement between Torentco and TOR.
Allegations surfaced that Energy Minister Dr. Matthew Opoku Prempeh and President Nana Akufo-Addo’s cousin, Nana Bediatuo Asante, who also serves as his Executive Secretary, were involved in disputes over TOR.
ACEP pointed out that Torentco, a new Ghanaian company established in January 2023, lacked the necessary experience and capacity to effectively manage TOR’s operations.
IMANI claimed that TOR had sought approval from Ghana’s Public Procurement Authority (PPA) to lease its main production assets to Torentco. This would involve Torentco assuming control of TOR’s core refining business for a six-year period.
Torentco would be allowed to refine up to 8 million barrels annually, paying an annual rent of $1 million, with an additional monthly rent of $1.067 million for any excess production.
The Senior Staff Union of TOR, however, countered these concerns by stating that Torentco was the best option to revitalize the refinery, as successive governments had been hesitant to invest capital in its operations.
Under the lease agreement, Torentco would pay $22 million to lease TOR for six years and would be responsible for various financial commitments, including investments, maintenance, insurance, and utility payments
