We own and operate refining assets where it makes sense to do so, given the logic of supply in that specific region. At present, our refining assets comprise of two refineries; one in Nicaragua and the other in PNG.
New ‘super’ refineries
Refining is not part of our core business model. In fact, smaller refineries across the developed world have been closing in recent years, often being converted into terminals and storage facilities for refined products, as we did with the former refinery we acquired in the UK.
These refineries have been replaced in the oil life cycle by far fewer ‘super’ refineries, which benefit from economies of scale; have the flexibility to handle up to 50 types of crude oil; and have the capacity to meet the growing demand for a wider range of refined products.
Selective assets only
Puma Energy does not operate any ‘super’ refineries and we choose to own and operate small refining assets selectively, currently in just two countries.
We operate two small refineries, one in Managua City, Nicaragua, which is important to the country’s supply system. The other refinery at Napa Napa in Papua New Guinea, has been significantly upgraded since 2014 to improve service to customers in the local market.