Papua New Guinea’s oil and gas sector has a new player after Singapore-based Puma Energy’s purchase of InterOil Corporation’s downstream business.

Napa Napa refinery

Singapore-based Puma Energy Corporation, which acquired InterOil Corporation’s downstream business in Papua New Guinea for US$525.6 million this week, is focused on ongoing growth and investment in the Pacific region as it enters the country’s oil and gas sector.

Through the deal, Puma Energy has acquired InterOil’s downstream operations, which include the 28,000 barrels a day Napa Napa refinery in Port Moresby, 52 service stations, and 30 fuel depots, terminals and aviation sites.

Puma Energy Chief Executive Officer Pierre Eladari said the acquisition represented the first step in the company’s strategy in PNG and offered considerable synergy with its developments in Australia and the broader Pacific region.

“We believe strongly in PNG and its future growth prospects, and see many opportunities for continued investment in infrastructure and in the skills of our employees to build upon the historic success of InterOil’s business, and to position PNG as a strategic hub with our regional portfolio,” Eladri said in a statement.

Who is Puma Energy Corporation?

• Formed in 1997 in Central America, Puma Energy has expanded into a global oil company with activities in 45 countries.
• Headquartered in Singapore, with regional hubs in South Africa, Puerto Rico, Australia and Estonia.
• The company’s core midstream activities include the supply, storage and transportation of petroleum activities. Its downstream activities include the distribution, retail sales and wholesale of a wide range of refined products.

After building a substantial downstream presence in PNG over the past decade, through ownership of the Napa Napa refinery and its retail businesses, InterOil’s focus will now shift entirely to its upstream and LNG operations following the sale to Puma Energy. Last month, InterOil finalised a $US300 million loan to fund its exploration activities in PNG.

InterOil Chief Operating Officer Jon Ozturgut said the transaction would immediately provide capital to fund the upstream and LNG business, and was in the best interests of PNG.

“Our upstream and LNG business has become core to the company’s growth and, as a result of the success we have had in discovering and monetising gas, the time is right to focus on this part of our business,” Ozturgut said.

The sale ensures that all InterOil staff employed in the refinery and downstream businesses, as well as general operations, will be immediately transferred to Puma Energy.

As another condition, Puma Energy also has the option to use the InterOil downstream branding for up to 12 months.