Director: Puma Energy positive about future in PNG

PUMA Energy remains positive about its future in PNG and is committed to the country despite economic challenges.
“Yes, there are challenges ahead and we will go through these economic challenges head-on which will only make us stronger for the better,” country general manager and director Hulala Tokome said.
“The team we have in Puma Energy have been through tough times in the past and are building on this resilience we will continue to keep on energising communities within PNG.
“We have the storage facilities to meet all of PNG’s fuel requirements.”
Tokome also told The National that the coronavirus outbreak in China had an impact on oil prices.
He said China was the biggest refining centre in Asia and it had seen many domestic refineries reduce production or shut down along with a sizable reduction in diesel and petrol demand as they contain the spread of the virus.
“The effect that the virus has had on restricted travel is quite large, which affects air travel and road travel; hence impacting jet fuel prices for aircraft and diesel/petrol consumption for vehicles,” he said.
“And with the overhang of supplies that are loitering on the market today, slack demand couldn’t come at a worse time.
“It is quite clear that oil prices will remain subdued due to reduced demand until the worst of the outbreak is over.
“The interesting question, then, is how much upside potential oil will have when this happens?
“Opec (Organisation of Petroleum Exporting Countries) has been discussing reducing production to help clean up the supply overhang.
“The main demand driver will be how quickly the Chinese demand can rebound, which is linked to how prevalent the virus ends up being.
“China was expected to have strong demand with the phase one resolution of the US-China trade deal, but the virus has constrained this demand uptick.”
Tokome said every aspect of the domestic and global economy had an impact on the oil market which was based on supply, demand and logistics costs.