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Leasing TOR to Torentco is the only viable option – Workers Union

The Senior Staff Union of the Tema Oil Refinery (TOR) has backed the government’s decision to lease the refinery to a Group named Torentco Asset Management.

According to the Union, leasing TOR will help revamp and reposition the company for sustainable operations.

Addressing concerns raised by analysts regarding the lease agreement, the workers union emphasized the urgent need to restore TOR’s functionality, citing years of political interference, mismanagement, and insufficient investment as contributing factors to its decline.

In their 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 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 stabilization of the Ghana Cedi.”

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.

But the workers union has welcomed the decision to engage a strategic partner, to revamp the refinery, highlighting the potential benefits in terms of fuel security, stabilizing the Ghana Cedi, job security, improved conditions of service, and renewed hope for the workforce.

“We are confident that this initiative would also guarantee job security and improved conditions of service and bring hope at last to the suffering workers, many of whom are lacing their boots to join the exodus.

“We consider the yet-to-be-finalized arrangements with the selected partner, TORENTCO as 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. In particular, we consider as refreshing that apart from the annual and monthly rent that the partner will be paying to TOR, they will also be making a capex investment of USD 22 Million on the plants and other associated facilities.”

“As far as we are concerned, there is currently no other concrete alternative better than what is being considered now. We, therefore, pledge our support to the Board, Management and the Government as it works to conclude this agreement.”

Source:Fiilafmonline/CitiNews

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