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Puma Energy Claims Government Is Already Paying Off Oil Debts

Puma Energy Claims Government Is Already Paying Off Oil Debts

The managing director of Puma Energy Mozambique, Danilo Correia, assured that the government is already paying off the debt accumulated by the state with the oil companies that import and distribute liquid fuels in the country.

‘A very large debt has actually arisen, and it worsened in March 2021, due to the effects of the war between Russia and Ukraine. The government took measures to reduce the debt and, at the moment, it is actually being reduced,’ he explained.

Speaking at a press conference to present a report on ‘energy security and infrastructure development’, the official revealed that the debt that existed with the company he runs has already fallen considerably, from 50 million dollars to 14 million dollars.

‘We think that if there are no big rises in the international price in the next three or four months, the debt will be resolved. This shows a great deal of collaboration between the government and the companies over the last few months and we’re very satisfied with the process,’ he added.

Danilo Correia pointed out that ‘the current process of debt payment by the state is not only happening with Puma Energy, but also with the other oil companies’, recognising that ‘each case is different’.

In March last year, Mozambique’s Confederation of Economic Associations (CTA) revealed that the government’s debt to the oil companies had tripled from 120 million dollars to around 450 million dollars, saying that the scenario was leaving the sector in an unsustainable financial situation.

The unsustainability of the debt has already led to the collapse of some importers. In April 2022, the Mozambican Association of Oil Companies said that the debt associated with the impact of the conflict between Russia and Ukraine had affected at least 15 companies out of 30 affiliates.

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