Minister queries Puma’s claim over lack of forex

PETROLEUM and Energy Minister Kerenga Kua says Puma Energy has sufficient foreign exchange (forex) in its hands to import fuel, but is again announcing a rationing of supply blaming a lack of forex.
“On a serious analysis of Puma’s USD (United States dollar) requirements, the Bank of PNG has advised that Puma needs a monthly sum of (between) US$20 million (about K73.2 million) (and) US$25 million (about K91.6 million),” Kua said.
“Against that in the month of September, Puma had US$50 million (about K183 million)-made up of US$29.4 million (about K107 million) in Puma’s own earnings and US$21 million (about K76 million) from BSP, bringing the total to US$50.4 million (about K184 million).
“That being so, for September, Puma had sufficient forex in its hands.
“The question is how could it be that Puma all of a sudden is short of foreign exchange?”
Puma announced last week that it would ration fuel supplies due to a lack of Forex supply.
Kua said Puma had been on so many occasions unilaterally invoking the force majeure provisions of the refinery project agreement.
“In circumstances where the BPNG seriously disputes Puma’s assessment of its monthly USD requirements, then the proper thing is for Puma to go to the National Court and obtain a declaration of its rights,” Kua said.
“It can (then) ask the National Court for consequential orders to force the BPNG to provide the additional foreign exchange that it needs.
“This procedure will ensure that an independent and impartial body is able to make a determination of the pros and cons, the rights and wrongs of the assessment of Puma’s claim to a certain amount of foreign exchange.”
He said for Puma to unilaterally make a determination of its rights, and to pass a judgment in its own favour, and to enforce it by diminishing or stopping the fuel supply to the public, “is a serious action that borders on treason”.
“I would encourage Puma to go to court to obtain orders to do what it is doing.
“ Failure to do so, in my view is an act of treason against the State, especially when it has USD50 million in its hands,” Kua said.
“In the 60 days that the previous State of Emergency has been in place, we have done a lot of work to try to understand what the issues behind Puma’s on-again and off -gain fuel supply to the country.
“In the end, we believe that it goes down to a dispute between Puma and BSP about what the correct level of foreign exchange is as required by Puma.
“Puma has supplied documentation to BPNG on what are the correct level of foreign exchange it needs is, and BPNG disputes that. And that remains to be the issue and that can only be resolved by the court.”