PNG PM Marape Flies to Singapore to Discuss Ongoing Saga between Puma Energy & Bank of PNG

The ongoing saga between Puma Energy and the Bank of Papua New Guinea continues to threaten Papua New Guinea’s energy securities.

And, the government will not allow this to continue.

A meeting has been organized with Puma’s executives in Singapore to discuss the issue.

PNG PM Marape

Prime Minister, James Marape left the country over the weekend accompanied by the Minister for Petroleum and Energy, Kerenga Kua, and the State Solicitor for this appointment.

A statement from the Prime Minister’s Office has revealed that the Minister for Inter-Government Relations, Soroi Eoi, will be acting Prime Minister for the next two days as Deputy Prime Minister, John Rosso is also out of the country. 

Meantime, on January 5th, the country’s only supplier of aviation fuel, Puma Energy suspended its supply of aviation fuel citing issues faced accessing US Dollars. 

Its Country General Manager and Director for Puma Energy Group of Companies, Hulala Tokome clarified that due to unsolved foreign currency constraints impacting the company’s ability to source crude oil and finished products, it is left with no option but to commence restriction actions.

Consequently, the national flag carrier, Air Niugini had to stay all its domestic flights leaving thousands of passengers stranded across the country.

BPNG’s acting Governor, Benny Popoitai meanwhile says there is no shortage of foreign currencies in the banking sector. 

He says the decision of Puma Energy is a commercial decision in which BPNG is not implicated and that the Central Bank is only a regulator of the financial sector and is not involved in any commercial arrangements. 

Prime Minister Marape in a statement says this issue between Puma and BPNG is now becoming a national security issue and a cause for concern about the functioning of the country’s economy.

So, the government is holding this meeting with Puma Energy’s executives to ensure the country does not have energy or fuel insecurity issues going forward into the future. 

He says PNG cannot be held to ransom like this – which recurs every time there is an issue with foreign exchange. 

He admits Central Bank has some regulatory issues with Puma and the government wants to hear from Puma’s management on why compliance with Central Bank directions is not possible to find a permanent solution.

Mr. Marape says he’s also bringing State Lawyers and they will be informing Puma that the government is looking at other options, apart from fixing the relationship between them and the Bank of PNG, and finding permanent solutions so PNG is not energy-insecure. 

The Prime Minister says he will also indicate to Puma that the government is reviewing the NapaNapa Refinery Agreement – which gives Puma a monopoly of fuel supply to Papua New Guinea - and to check if they are in full compliance with all requirements that secured this present monopoly.

Mr. Marape reiterated that the Government is now seriously looking at the downstream processing of PNG’s oil and gas resources.

NBC News / PNG Today

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