PNG fuel supplier Puma granted relief from court order

Photo: Puma Energy

Puma Energy would now be able to make its own decision on fuel supply to the national airliner, Air Niugini.

This follows a National Court order by Justice John Carey at the Waigani National Court Tuesday which releases Puma energy off a restraining order given by the Chief Justice Sir Gibbs Salika last month.

The order by Sir Gibbs had then read: “Pursuant to section 12 of the laws adoption and adaptation Act chapter number 20 and section 155(4) of the Constitution and the inherent jurisdiction of this honorable court, an order restraining the defendant, its agents, and associates from implementing any temporary supply restriction or otherwise reducing fuel supply to the plaintiff below the agreed levels under the Agreement”.

However, Justice Carey ruled accordingly after considering that “a guarantee of money valued at K3 million(US$798,000) of a nine-day product supply” has been owed by Air Niugini to Puma energy as part of the agreement between the two.

“The Court relieves the defendant (Puma Energy) off of the court restraining order of 26 January  which was further extended to February 27,” Justice Carey said.

“Restraining orders of that nature should only be put in place for only exceptional circumstances and the courts need to be more flexible on specific remedies in drastic issues like this,” he added.

It is understood that Puma Energy and Air Niugini are continuing their mediation process on the matter as directed by Justice Carey earlier this year.

They are expected to return to court with a consent order on May 22 to be endorsed. “If parties still have an issue, they are expected to file notices of motion and present it then,” Justice Carey said.