Management of the Tema Oil Refinery (TOR), says the allegations against Tema Energy Processing (TEPL), in its quest to rehabilitate the refinery’s infrastructure and engage in refining activities are unfounded.
The Management said the lease agreement between TOR and TEPL was done in good faith, and it is a good deal for the revival of the facility.
The decision to offer the refinery to TEPL received stiff opposition from the TOR Workers Union.
Through the General Transport, Petroleum and Chemical Workers Union, the workers petitioned the Office of the Special Prosecutor to investigate the agreement, leading to a directive from the OSP to TOR to suspend the proposed partnership agreement.
The Management of TOR said the transaction will be beneficial to the TOR workers and will improve their living conditions.
The Board Chairman of TOR, David Kwame Tandoh Adomakoh, said the Board has always been open to other investors, but TEPL is the only company willing to help offset TOR’s Debt within the 6-year lease period.
“You’ll hear of them. Here and there. This company, that company. They come with promises, and then they’re gone. It’s not any easy place to make something like this work. But it is extremely difficult to find parties interested in taking on this opportunity. Most of the likely candidates don’t have an interest.”
David Kwame Tandoh Adomakoh debunked claims that the TOR Workers’ Charity Fund is to benefit selected Workers.
“What they have done which has been misunderstood and they didn’t need to do this was to try and find a way to introduce benefits for the workers as a whole. The creation of TEPL was to establish a Workers Charitable Trust. And the idea behind that was to allow TOR Workers as a whole to benefit from whatever benefits were coming out of the lease arrangement.”
Tema Energy Processing (TEPL), was previously Decimal Capital, later Torentco, and now TEPL. Torentco has a 40 percent share in TEPL, CAD investment 40 percent and a 20 percent share for the TOR Workers.
TEPL TRANSACTION FEATURES
According to the partnership agreement, if the Lessee fails to meet its payment obligations when they fall due under the lease, TOR has the right to terminate the contract without cause.
All employees remain in the employment of TOR; the Lessee provides technical supervision over the operations and maintenance of the Leased Assets.
TOR retains its throughout revenues (est. USD4mm pa), GPMS dividends about USD 8mm.
Realistic prospect of employee annual salary increases; until recently, salaries have declined in real terms as there has been no increase for 5 years
Allows TOR to structure realistic payment plans to cater for its statutory debt to address restructuring options for its other commercial liabilities.
Total investment in the TOR fixed assets and infrastructure over the lease term is estimated to be about USD50 million.
Early Buyout Option grants TOR the flexibility to continue exploring other commercial arrangements, so the Lease Agreement does not lock TOR in for the term of the lease.
BENEFITS OF PROPOSED TRANSACTION
Torentco has assembled a committed group of leading energy TOR rehabilitation companies backed by the world’s leading oil trader to deliver on the TOR rehabilitation.
Results in the refurbishment and improvement of TOR infrastructure. Restores TOR to profitable and sustainable refining activity.
Development and training of key core skills, including a return to annual graduate employment and training. Restoration of staff morale, pride, working conditions and benefits flexibility for TOR to terminate at any point during the 6-years lease term by returning capital invested to the Lessee (per the terms of the lease Agreement)