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Workers at Tema Oil Refinery express concerns over lease agreement with Torentco Asset Management

October 14, 2023
Workers at Tema Oil Refinery express concerns over lease agreement with Torentco Asset Management
Tema Oil Refinery

Workers at the Oil Refinery (TOR) have expressed opposition to the government's decision to lease the refinery to a group known as Torentco Asset Management. The workers' concerns revolve around the behaviour of some of the refinery's union leaders, whom they accuse of pursuing personal interests.

While the workers support the idea of the refinery being taken over, they question Torentco Asset Management's focus on running only the Crude Oil Distillation Unit (CDU) and whether this approach can truly make TOR profitable. A concerned worker, speaking anonymously, raised doubts about the profitability of the refinery under such circumstances.

Initially, the Senior Staff Union of TOR supported the government's decision. However, some staff members have raised issues regarding the alleged secrecy surrounding the negotiation of the agreement between a select few senior staff members and Torentco Asset Management. They emphasize the need for more transparency and involvement of all stakeholders in finding a solution to make the refinery profitable.

The workers have called for more details about the agreement and questioned why they have not been provided with information about the agreement's content, especially regarding its clearance by the State Interest and Governance Authority (SIGA) and Public Procurement Authority (PPA). They believe that all parties involved should work together to ensure the refinery's profitability.

According to the lease terms, Torentco Asset Management Group will pay $22 million to lease the refinery for six years. The group is expected to refine up to 8 million barrels annually and will be required to pay an annual rent of $1 million, along with an additional monthly rent of $1.067 million.

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