The Chief Executive Officer of GOIL PLC, Edward Bawa, has revealed that he inherited about $110 million in debt when he assumed office in 2025.
Speaking in an interview on Channel One TV’s The Point of View, Mr. Bawa said the debt was owed to BP, which at the time was the sole supplier of petroleum products to GOIL.
According to him, the company had struggled to meet payment deadlines for invoices, leading to a “ring-fenced” debt arrangement with the supplier.
“At the time I got there, if we were to take BP, there was a ring-fenced debt. Usually, invoices have a maturity date for payment. But GOIL was unable to pay on time. At that point, the debt stood at about $110 million owed to one company—BP,” he explained.
Mr. Bawa said the situation made GOIL uncompetitive at the pumps due to high premiums on petroleum products, especially during periods of rising fuel prices.
“BP was the only company supplying us. As and when we could pay for products, premiums were very high, which made us uncompetitive at the pumps. When prices went up, it became an issue,” he added.
He noted that the company has since taken steps to significantly reduce the debt burden.
“Thanks to a slightly improved exchange rate, we engaged our bankers and have been able to reduce the debt to about $30 million by settling the rest,” Mr. Bawa said.
He further indicated that GOIL has also been dealing with supplier challenges, outstanding bank obligations, and intermittent fuel shortages at some outlets, largely linked to the country’s recent economic difficulties.
