Puma Energy has highlighted to Prime Minister James Marape in a meeting in Singapore that Kutubu crude oil from Southern Highlands was not supplied on a regular basis to its NapaNapa refinery in Port Moresby.
PM Marape, in a statement issued last night, said he has directed Minister for Petroleum Kerenga Kua to liaise with Santos and ExxonMobil on how to increase this supply - either to NapaNapa or have a new refinery set up.
“Downstream processing of our natural resources, including oil and gas, is a major policy of this Government and our coalition partners,” the PM said.
“Therefore, we cannot be energy-insecure, as we are producing oil that goes to refineries in Singapore and is then sent back to us.
“We can reverse this arrangement if the cost structure is right.”
The Prime Minister stressed that oil from Kutubu can be sold in Kina to NapaNapa refinery, or a new refinery set up, and process in-country.
“I will be having meetings with Santos, ExxonMobil, Kumul Petroleum Holdings Ltd and Mineral Resources Development Company upon my return from Singapore, to look at producing petroleum products from our own resources instead of importing.
“The whole idea is to ensure that we are energy-secure, instead of being wholly-dependent on one supplier; to save the country from grinding to a halt as we’ve seen last Thursday.”