Pruaitch welcomes Oil Search decision on purchase of crude oil

Opposition Leader Patrick Pruaitch has welcomed the decision by Oil Search to discuss future sale of domestic crude oil to the Napa Napa refinery in Kina rather than US dollars.

Pruaitch said he stood by his earlier statement that it is in the national interest for locally produced resources such as crude oil, copper, gold, fishery and forest products to be sold to local purchasers in PNG’s national currency, the Kina.

The leader of the opposition said in a media statement today that it is an infringement of our sovereignty for lenders or any other entity to insist that domestic resources be paid for in US dollars or other foreign currencies, when selling to PNG buyers.

He said such arrangements add to the cost of doing business, and hamper efforts to encourage domestic processing.

Pruaitch said he was not convinced by the Oil Search assertion that LNG project lenders had a loan condition that gas and condensate sold by the project must be priced in US dollars.

He said under the 100-Day Plan announced by Treasurer Charles Abel, it was disclosed that discussions are underway for Puma Energy, operator of the Napa Napa oil refinery, to pay for 50% of crude oil and condensate purchased from Oil Search in Kina.

Acting Prime Minister Charles Abel said small and specific measures are required to implement the Government’s 100 Day plan, and one of them is the partnership with Napanapa and Oil search.

Minister Abel said so far the 100 day plan has been progressing well and needed a coercive effort from leaders from both the Government and Opposition MPs to make it happen.



Freddy Mou