Leasing TOR to Torentco bad deal – COPEC cautions
Stakeholders within the oil and energy sector are raising red flags over the government’s proposal to lease the Tema Oil Refinery (TOR) to Torentco Asset Management (TAM).
The Executive Secretary of the Chamber of Petroleum Consumers (COPEC) Duncan Amoah is questioning the capacity of the new entity to take over a huge company such as TOR.
Speaking to Citi Business News, Duncan Amoah impressed on the government to reconsider the move.
“If you want Torentco to manage a big company like TOR with assets running into millions of dollars, one will be asking questions of capacity and so it becomes difficult for the new company that has been formed will be able to hold the assets and day to day management of TOP such that if there is a contingency and liability arising, there will be something to hold on to. We do not have that confidence in that new entity. That right way to go is a PPA”, he said.
TOR has been considered to be leased to Torentco Asset Management Group for $22 million for 6 years and is expected to refine up to 8 million barrels annually.
Government’s decision has vehemently been criticized by industry watchers.
The Africa Centre for Energy Policy (ACEP) has for instance raised red flags because it was not done through a competitive bidding process.
During an interview on Eyewitness News on June 21, Executive Director of ACEP, Mr. Boakye expressed concerns about Torentco’s lack of experience in the petroleum industry.
However, the Senior Staff Union of TOR in a statement said Torentco is the only viable option available to bring back TOR into operation since successive governments are hesitant to inject capital into its operations.
Source: Ghana Business
