Leasing TOR to Torentco is the only viable option – Senior Staff of TOR back deal

The Senior Staff Union of Tema Oil Refinery (TOR) has stated that the lease of the refinery to a Group named Torentco Asset Management is the only viable option for the refinery at this point.

According to them, successive governments have failed to put up measures to bring the refinery back to its full working capacity.

In a statement on June 20, 2023, the group noted that “We consider the yet-to-be-finalised arrangements with the selected partner, TORENTCO Asset Management, the only viable option available to bring back the refinery into operation since successive governments are hesitant to inject capital into the operations of the refinery.”

They also emphasized that the deal’s terms allow the country to terminate at any point if any breaches are recorded.

“It is also important to clarify that per the terms of the arrangements, TOR is allowed to terminate the deal at any time and refund the cost of investment to Torentco, if it finds a better alternative during the tenure of the agreement,” it added.

The said lease of the Tema Oil Refinery 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 $22 million for 6 years and is expected to refine up to 8 million barrels annually.

Also in the deal, the group will pay $1 million as annual rent and an additional rent amount of $1.067 million per month.

Some of the concerns raised include the assertion that TOR has the capacity to refine up to $700 million worth of crude, therefore leasing it for $22 million is a “bad deal”.