Woodfields Energy Resources Limited, a petroleum operating company, has emphatically stated that it is not indebted to the Tema Oil Refinery (TOR) as has been published in a section of the media. According to the company it has over the years been diligent with its payment schedule with TOR and is however amazed at any report that ascribes debt to it.
In a press statement, the company said: “Management has taken notice of publications in sections of the media that seek to tarnish the good reputation of the company by suggesting that Woodfields is indebted to Tema Oil Refinery (TOR) to the tune of US$5million and has refused to make payment thus weakening the financial position of the state institution.
Woodfields and its affiliates have been engaged with TOR over the last three decades within which period it has initiated mutually beneficial ventures, enabling the refinery to increase and improve its facilities. The recent activity being pursued is a processing arrangement that grants Woodfields the right to process a total of eleven million barrels (11m) of light crude oil. This processing arrangement commenced in August 2019 and is still in operation as of March 3, 2021.”
The company further stated that; “It must be mentioned that this is the first time in the recent history of the refinery that it has managed to operate a light crude oil (LCO) processing agreement in a sustained manner over such a long period. This has been achieved by Woodfields who took the sole risk to secure funding and work closely with TOR, both commercially and technically for the successful outcome.
We state emphatically that Woodfields has honored all its payment obligations for processing fees to TOR and is not indebted to TOR for any processing fee charges.”
With a recent challenge the company has had with TOR, it explained in the statement that it “observed through stock accounting records certain shortfalls in product volumes held in tanks at TOR to the tune of about US$5.7million.
Per standard practice for processing agreements, we have engaged TOR in a material balance (product reconciliation) to ascertain the shortfall. We notified TOR in December 2020 of our desire to suspend any payments until after the material balance reconciliation which is presently underway.
However, to demonstrate good faith and in recognition of the reconciliation exercise taking longer than anticipated, we have made payments in excess of US1M) to TOR since the commencement of the exercise in January 2021.”
The company has asked the public and well-meaning members of society as well as industry players to completely disregard any publication that seeks to paint a wrong picture as to the nature and style of the company and its operations in the country. It said the company remains a credible business with a strong belief in ethics and fairness.