The Tema Oil Refinery (TOR), is on the neck of Woodfields Energy, for the later to settle some $5million owed [to] the strategic state institution.
The debt came about as a result of processing of crude belonging to Woodfields Energy at the country’s only refinery.
But Woodfields Energy is claiming that there was a kind of reconciliation that must be done by TOR before the settlement of the $5 million debt could be done.
The Inquisitor’s probe into the whole matter has proved that the reconciliation has already been done as Woodfields Energy made certain claims that were disputed by TOR.
TOR is currently in weak financial position and the Woodfields Energy debt has largely contributed to the ugly situation.
TOR at the later part of 2019 secured what is known as tolling crude oil processing agreement with Woodfields Energy Resources Limited, which is wholly-owned by the indigenous oil trader and its international partner, Vitol, to process some 11 million barrels of crude oil.
The deal was to make TOR earn fees that would enable it retain its human resources and utilise its equipment. But that have not been achieved because Woodfields Energy is not forthcoming with payments for the services it is enjoying from the state refinery.
It is instructive to know that Woodfields Energy still has crude oil stored in the tanks of TOR at Tema.
Authorities at TOR do not want to speak about the Woodfields Energy indebtedness to the state agency; but The Inquisitor is aware of numerous letters and communications to prevail on Woodfields Energy to settle its debt.
The Inquisitor is reliably informed that TOR is financially weak because of Woodfields failure and or inability to settle the debt and that is making it to plead with other state entities for a bailout.
The tolling fee from Woodfields Energy, if it had been settled, would have been enough to distress TOR.
The Inquisitor Speaks With Woodfields Energy…
Mr. Joe Mbrokoh-Ewoal is a top official of Woodfields Energy Resources and he told The Inquisitor that the company was insisting on reconciliation before making payments or otherwise.
According to him, Woodfields Energy through a letter to TOR has indicated that it would not make any payments without seeing its way clear.
‘’Woodfields Energy has sent demand notice to TOR that it rather owes us and not the other way round,’’ he said.
Mr. Mbrokoh-Ewoal told this paper that Woodfields Energy was disputing certain aspects on the yield sheet that TOR was presenting for payment.
He said: ‘’There are issues such as ATK products of Woodfields turning into Kero and Kero turning into ATK and then there is the suspicion that TOR has offloaded some of our products and made some claims of $4.2.’’
He said that Woodfields Energy over the years has shown good faith to TOR and that the claim that it owes TOR $5million was inaccurate and speculative.
However, The Inquisitor has it that TOR discounted all the claims by Woodfields Energy, and that there was no reconciliation to be done.
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