PUMA Energy

Despite attempts at reconciliation, Puma's recent move to cease JETA1 supply and initiate facility demobilization prompted OTML to seek alternative arrangements.

In response, OTML swiftly engaged with alternative providers to ensure a smooth transition towards self-sufficiency in fuel supply.

Kedi Ilimbit, OTML's Managing Director and CEO, emphasized that the decision was made after careful consideration of operational needs, prioritizing reliable fuel services.

Mr Kua noted that among other directives, the Government has given directives to Bank South Pacific to maintain Puma’s accounts for an additional 12 months and has appointed Deputy Prime Minister John Rosso to be the ‘Team Leader’ on this issue on behalf of Cabinet.

“Although I am not privy to some of the discussions going on between our industry leaders and the Government, I find it appalling the Government is forcing BSP with emergency provisions to maintain Puma’s accounts.

The move comes as a relief to Air Niugini, which recently inked a deal directly with Puma Energy's international supplier to procure a cargo of jet fuel. However, the situation remains dire, with Puma Energy facing a short-term disruption in its supply chain.

The depletion of existing jet fuel stocks has been accelerated by a court order mandating Puma Energy to maintain maximum supply to Air Niugini. Consequently, the company anticipates running out of jet fuel in Port Moresby as early as today, until the replacement cargo arrives later this week.

In a notice dated February 19th, chairman and managing director, Hulala Tokome, advised that there will no longer be nominated premises where fuel cards can be used.

“Accordingly, no further usage of your fuel cards will be permitted until otherwise advised in writing by Puma PNG,” he stated.

“We further request that you immediately return any fuel card in your possession to Puma PNG. These fuel cards may be returned to you in the future.

“Any further usage forthwith shall be considered unauthorised use.”

BSP in a media release stated that this comes at the request of the PNG Government. 

The extension has been granted on the basis that additional time is required for Puma to complete transferring its banking requirements to another bank in PNG.

The civil unrest that affected many parts of the nation between the 10th and 11th of January, 2024, were unfortunate and unforeseen. BSP has granted this extension considering disruptions in normal business operations for other banks, financial institutions, and the business community at large.

Chief Executive Officer of Puma Energy Hadi Hallouche, emphasized this commitment during his recent visit to PNG, where he engaged with government and business leaders in Lae and Port Moresby.

Addressing the recent fuel-related concerns impacting customers nationwide, Hallouche highlighted that these discussions were aimed at finding sustainable solutions beneficial for all stakeholders in the industry, the business sector, and the wider community.

In another statement yesterday, Puma said its inability to repay suppliers for international fuel purchases over the past six weeks has raised concerns about impending fuel shortages.

Puma Energy is urgently calling on both commercial banks and the Bank of Papua New Guinea (BPNG) to allocate the necessary foreign exchange. 
"Ensuring fuel supply is vital to PNG. We continue to urge the BPNG and banks to work together and allocate FX flows to fulfill Puma Energy’s orders.”

BPNG has committed to urgently providing the remaining FX needed for September and October, enabling Puma Energy to procure fuel on the international market.

Puma Energy, facing looming fuel shortages, had contemplated fuel rationing to safeguard essential services and infrastructure. Grappled with substantial overdue payments, the company will actively manage declining fuel stocks while awaiting the BPNG's intervention later this week.

The 30-Days Declaration of Emergency sets out a Plan of Action to investigate, amongst other issues, the Bank of PNG’s 13 Allegations against Puma Companies.

In a press statement, Minister for Petroleum and Energy, Kerenga Kua announced on behalf of the National Government that a Declaration of Emergency has been made as per the National Executive Council Decision No. 215/2023.

The declaration is pursuant to Section 136 (1) of the National Energy Authority Act 2021 (NEA Act) and Section 4 of the Essential Services Act 2002 (ES Act).

Chairman and Managing Director of Puma Energy Papua New Guinea, Hulala Tokome in a statement said rationing will continue in order to extend security of supply for emergency services, hospitals and critical infrastructure.

Mr Tokome said without the necessary access to sufficient FX and financial services they are resorting to rationing and managing the remaining fuel stocks.