Puma Energy has announced a temporary supply restriction, effective from midnight today, in order to preserve the remaining stock on hand till a proper solution is available.
This follows Bank South Pacific’s (BSP’s) decision to withdraw the fuel supplier’s access to banking services on 19 January, 2023 which affected its access to foreign exchange and disrupted transactions to maintain the fuel supply.
The announcement was made by Puma Energy PNG Limited Chairman and Managing Director Hulala Tokeme.
“BSP remains unwilling to restore our banking services or to discuss solutions,” he said.
“BSP has similarly also informed our primary supplier and affiliate, Puma Energy PNG Refining Ltd (“Puma Refining”), about the closure of its bank accounts.
“This situation is beyond our control.
“BSP is the only bank among our existing banking partners able to provide access to the financial services and foreign exchange needed for our operations.
“BSP’s current access to FX flows are materially insufficient for Puma Energy to purchase fuel from the international market and ensure normal levels of supply into PNG.”
Took said Puma Energy will not be able to order further stock from suppliers without sufficient certainty that its suppliers will and can be paid.
He said likewise, Puma Refining would need to take similar actions to cut back its operations but that would mean a reduction in fuel supplies for the public.
“In the absence of a solution, I regret to inform you that Puma Energy will need to implement temporary supply restrictions in order to preserve the remaining stock for as long as is practical,” Tokome said.
He said Puma Energy has delayed implementing a reduction of supply but it is now unable to support the public’s daily demands for fuel.
Tokome said Puma Energy will endeavour to meet all emergency supply needs across all locations as long as they have remaining stock available.
“But please be advised that to the extent that Puma Energy is unable to fully discharge its obligations under its agreements with clients, such an occurrence is as a result of the reasons stated and constitute a force majeure event, as contemplated in the supply agreement,” he said.
“While we are unable to determine how long this situation will last, we have taken all reasonable maneuvres to mitigate its impacts, including continuing discussions with stakeholders to resolve the situation.”
Tokome said the firm has requested the PNG Government to form a taskforce to ensure the country remains supplied with fuel and minimise the impact on communities and the economy during this period.
“We hope this process, if it is actioned by the Government, will provide some respite during this difficult period,” Tokome said.
“We apologise for the inconvenience.”
