Leasing Tema Oil Refinery (TOR) to Torentco Asset Management Group for six years will revamp and reposition the refinery, according to the Senior Staff Union of TOR.
Bright Adongo, chairman of the union, said that not leasing the refinery as planned could lead to its total collapse.
He added that the benefits of the deal are enormous, security-wise and economically.
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.
Bright Adongo, chairman of the Senior Staff Union of the Tema Oil Refinery (TOR), told Citi Fm that “The benefit is enormous, security wise, economic wise and it makes sense that you are keeping jobs and all that. If you get a running refinery and there are wars somewhere and you cannot get the finished product, you can bring your crude oil from the fields, process and transform it to get the economy running.”
The Union Chairman revealed that the refinery was seriously challenged as it was among others highly indebted to utilities, had only few product storages (20 out of 59) and had not increased salaries of workers for the past five years.
Mr Adongo rubbished claim that the private company will run down the refinery saying that “If they are to run the plant down definitely then the plant cannot deliver as it has to. If you are a private man, your intention is to fix those items that need to be fixed. So obviously I don’t see a private man who would want to take over a facility and make a significant investment, and he will want to break the plant down.”
This come after the Senior Staff Union of TOR has already backed the government’s decision to lease the refinery to Torentco Asset Management.
The union believes that leasing TOR would help revamp and reposition the company for sustainable operations.
The union also addressed concerns raised by analysts regarding the lease agreement, emphasizing the urgent need to restore TOR’s functionality.
They cited years of political interference, mismanagement, and insufficient investment as contributing factors to its decline.
In a statement, the union stated, “It is on the basis of this, that we the Senior Staff Workers Union of TOR (PMSU of UNICOF) welcome the decision by the board and the government to engage a strategic partner to revamp the refinery and bring it back to operation to contribute to fuel security in the country and stabilisation of the Ghana Cedi.”
The lease of the TOR has attracted great national concern after some analysts raised issues concerning the terms of the agreement.
The refinery will be leased to Torentco Asset Management Group for 6 years and is expected to refine up to 8 million barrels annually.
The group will pay $1 million as annual rent and an additional rent amount of $1.067 million per month.
By Vincent Kubi