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OTML steps in for steady fuel supply


Ok Tedi Mining (OTML) will manage the procurement and distribution of Jet A1 fuel as part of its commitment to support PNG.

OTML has constructed supply agreements to operate on a cost-recovery basis, meaning the company is not seeking profit from these transactions, but is focusing on ensuring that the Jet A1 fuel is available for use.

Jet A1 fuel is used by PNG’s major airlines, which OTML is reliant on for transportation of its fly-in, fly-out (FIFO) workforce.

Key aspects of the supply agreements include:

  • prepayments made in Kina: all Jet A1 payments are made by the contracted parties in advance in Kina before the fuel is loaded overseas
  • minimum order quantities: to ensure stable supply, minimum order quantities have been established, assisting in managing logistics efficiently and guaranteeing that there is enough fuel to meet demand
  • long-term agreement: a 24-month agreement has been put in place to amortise fixed costs over a longer period.

“OTML remains dedicated to supporting the nation through this period of fuel scarcity,” the company said. “Our swift actions to secure and distribute Jet A1 reflect our commitment to national welfare and economic stability.

“We will continue to work closely with all stakeholders to ensure a reliable and steady fuel supply, supporting the nation’s infrastructure and economy.”

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