Mr. Bernard Owusu, the National Chairman of the General Transport Petroleum and Chemical Workers Union of TUC (GTPCWU OF TUC) has called on the government, as a matter of urgency, to do all that is possible within its power to get the Tema Oil Refinery back on its feet.
He has stated that there has been a heavy and adverse effect on workers, the economy and many sectors due to the poor performance of the state-owned organization.
Mr. Bernard Owusu was addressing a press conference on the premises of TOR, Ghana’s only state refinery, yesterday.
He stated that TOR, since its establishment in 1963 has been a key player in the refining of crude oil and in the provision of other critical services to the Ghanaian market players as well as other International Oil Trading Companies (IOTCs).
He explained that TOR’s current installed capacity of 45,000 barrels a day, representing half of the domestic consumption demand of the country.
He stated that a working TOR has numerous economic advantages for Ghana, such as capacity to provide 50 % of overall domestic consumption,100 % of RFO for industries, 20% – 25% of LPG consumption, and 100% of ATK consumption.
He stated that on the average, Ghana requires about $ 4.8 billion to import petroleum products per annum.
“However, If TOR is producing, the forex requirement for petroleum product imports will significantly reduce by over 50%,” Mr. Owusu stated.
He said that another advantage, is TOR were producing, would be lower domestic ex-pump prices due to the removal of certain import charges like the freight rate of about $92/Mt for petrol, $101/Mt for diesel and $83/Mt for LPG and a lower financing charges because these transaction are cedi denominated.
“At a time of an ongoing financial distress and debt restructuring program, significant benefits of these magnitude in essential commodity such as petroleum products should be top on the national agenda,” he stated.
Mr. Owusu wondered whether the managers of the country have no confidence in those they have appointed to manage the TOR facility.
“The state is responsible and determines those who constitute the Board of Directors and the MD of TOR. Therefore all past and current operational anomalies and challenges must be borne by the appointing authority of these key critical office holders, knowing very well that all operational controls are a function of management,” he stated.
He stated that prior to the inauguration of the current MD and the BOD, the interim management committee put in place by the Minister of Energy had secured a proposal from a potential private partner with private equity that combines debt management, capitalization for retooling and continues provision of crude oil.
He explained that the minister then tasked the current MD and the BOD to see to the full implementation of the proposal.
“However, over one year down the line, there has been no show. This leaves much to be desired. The inability of the BOD and MD with all the state actors to get these all important partnership agreement signed, has resulted in…..hardship to the Ghanaian economy and the workers of TOR,” he explained.
He enumerated some of these hardships as high prices of petroleum products at the pump, high demand for forex to import finished products, and high cost of living, with most pensioners of TOR not been able to access their pension benefits.
“Additionally, TOR Workers are unable to meet their domestic and social obligations resulting in children being sacked for school fees, inability to pay rent advance, and indebtedness to individual lenders and banks. It has resulted in various ailments and even the death of about 20 staff in the last 2 years. There has been a high level of frustration, depression, despondency and even suicidal thoughts,” Mr. Owusu stated.
He said that further Workers’ Provident fund has been in arrears for years in violation of the law regulating pensions. This has resulted in untold hardship for staff.
He stated that news and misinformation of TOR’s inability to refine Ghana’s Jubilee, TEIN, and Sankofa crude, is palpable falsehood.
“Very competent and skilled workers trained with hard-earned currency both at home and abroad are resigning and going to various companies such as MODEC., TULLOW, GHANA GAS, NPA, PETROLEUM COMMISSION just to name a few. It is funny that some of the highly trained and skilful staff are going to Refineries in a place like Afghanistan. Some have gone to Iraq, Vietnam, Saudi Arabia, Qatar, Nigeria, and U.A.E just to name a few- despite the Security implication for such staff,” he said.
On the way forward, Mr. Owusu called for all pending processes holding the private partnership agreement to be expedited and signed as early as practicable and finally get TOR functional.
“In conclusion, it is our plea that the refinery will work again to save the Economy, mother Ghana, and Workers of the Tema Oil Refinery,” he concluded.
