Tema Oil Refinery (TOR) says it has put in place machinery to adopt Torentco Asset Management (TAM) as a strategic partner.
Management of TOR believes they are now in a better place with all of its outstanding issues including debt owed the Electricity Company of Ghana (ECG) paid.
Earlier, the board and management of TOR had defended the contract with Torentco by explaining that although they had wished to deal directly with a major multinational company, TOR’s accrued debts made the refinery unattractive to many, hence the decision to settle on Torentco.
In a three-page document to the press, management added that the partnership will allow TOR to move from being an annual loss-making entity to having a sustained positive net cash flow during the lease.
It will also demonstrate that crude oil can be processed at the refinery and help TOR to achieve industry-accepted yields if managed efficiently.
Finally, the partnership will stem the exodus of skilled staff to the middle east and other parts of the world to secure opportunities.
Management stated that the transaction is already in its final stages of documentation and the company has an extensive list of ‘conditions precedent’ which Torentco must satisfy to demonstrate their ability to deliver all that is required in the transaction.
“If at any point they are unable to do so, the transaction will not become effective and TOR will be left to continue with its ongoing efforts to find a solution,” the report added.