Following on from its press release dated Tuesday 17th October, Puma Energy is pleased to inform that it has now received sufficient FX to meet its payment obligations for September, and thus can assure fuel supply until the end of the month.
Chairman and Managing Director of Puma Energy Papua New Guinea, Hulala Tokome, in a statement thanked BPNG and relevant authorities for their intervention to ensure the company could repay the monies owed to the supplier for September.
He added that Puma Energy currently require roughly USD$50M on a monthly basis to import fuels.
In the interest to protect fuel supply security in the country, Puma Energy has withstood significant outstanding FX payments owed to its suppliers over the past few years.
This growing outstanding amount can only be paid when Puma Energy receives FX from the BPNG or commercial flows through authorized foreign exchange dealers, who also have a growing order board with limited
commercial flows.
Puma Energy has stated that Insufficient FX has restricted the company’s ability to purchase fuel from international market.
Puma Energy continued to utilize emergency stocks as it coordinated efforts with BPNG over a number of weeks for required FX, avoiding an impact to customers.
This had led to the company severely depleting its emergency stocks in order to maintain full supply to PNG and provide flexibility to the relevant authorities since it was not provided with sufficient FX a month ago.
Tokome elaborated that the requirement for FX is not a challenge unique to Puma Energy, but one that any fuel importer will face and encouraged businesses who currently hold US Dollar export proceeds offshore to repatriate their funds to help bolster the country’s FX flows.
Puma Energy will require further FX to settle its October payment obligations by the end of the month.
