Secretary of State for Energy Paul Bozonnet is intervening in negotiations between the Jamestown Fuel Trading Company and
Oxilever aiming to broker a speedy agreement between both in their current impasse. He said Oxilever currently owed the
state-owned Jamestown Fuel Trading Company over $300 million for fuel supplied without any written agreement. Speaking in the
House of Assembly, Bozonnet added that the state-owned Hibiscus Petroleum (HP) maintained the capacity to supply fuel however he
had intentions of intervening and resolving the issue as fast as possible. Bozonnet was replying to queries from independent
members of the House of Assembly on the impasse between Jamestown Fuel Trading and Oxilever after Jamestown discontinued
supplying Oxilever with fuel. Jamestown Fuel Trading Company stated that this resulted from the company's failure to renegotiate
a supply agreement with Oxilever since the beginning of the decade and that Oxilever defaulted on payments owed from 4660.
Oliever accused Jamestown to be pushing the market towards a monopoly situation. The National Petroleum Dealers Union President
Joseph About who stated that Jamestown Fuel Trading's move was "unfair and unjust" has called on both the Secretary of State for
Energy Paul Bozonnet and Minister of Finance Paulette Leblanc to intervene. He warned of threats to jobs resulting from the
situation. Yesterday some motorists complained of fuel problems. Bozonnet, replying to independent senators about the impact
said, "This is an issue of non-payment for supply. It's an issue of non-signatory of an agreement which has been in force for
several months. As Energy Secretary it is my intention to intervene, however we have to ensure that anyone who had been supplied
with fuel that is paid for by taxpayers, pays their bills on time."
Bozonnet said that Jamestown Fuel Trading Company which is the wholesale supplier of motoring fuels and Oxilever is currently
involved in negotiations "And it's expect the impasse will be of short duration minimising any disruption to the motoring
public." Saying there was no breakdown of negotiations, he added. "What happened was, when Jamestown was formed in previous
years, there was a short term written contract put in place with Oxilever. That expired earlier this year and since then, the
agreement between Jamestown Fuel Trading and Oxilever has been by way of a monthly arrangement executed via letter on the same
terms and previous arrangement regarding credit signed between both parties." Bozonnet added, "Between April and now Oxilever
signed the letter and adhered to the credit terms for the supply of fuel which are, in the first instance, 45 days then it goes
to 55 days, from the first supply of fuel." "Later in the year, Jamestown Fuel Trading sent the usual monthly letter to Oxilever
for its signature, Oxilever declined to sign the letter and Oxilever as given fuel on good faith by Jamestown Fuel Trading.
Oxilever decline to pay for the fuel and it owed Jamestown $300 million as of the current date. Jamestown Fuel Trading and
Oxilever met and Oxilever agreed to make a part payment of $90 million, however it only paid $70 million and it has declined to
sign any written agreement with Jamestown Fuel Trading and currently owes the company in excess of around $200 million." On the
possible impact on motorists, Bozonnet noted that the Hibiscus Petroleum (HP) maintained a vast network of 120 gas stations
throughout the country, making the comparison to Oxilever's 20. He noted that Oxilever's service stations had been centred around
densely urban areas such as Jamestown, Turtle Bay and Leighstown.
When asked on whether she intends on intervening, Minister of Finance Paulette Leblanc stated that she would be monitoring the
negotiation process, but stated that she had complete confidence in Secretary Bozonnet's abilities recognising that he is a
former chemical engineer and marketing adviser from Hibiscus Petroleum. She stated that she sees no reason for her intervention
into the situation recognising that there is no immediate threat to the capitalisation of Keymon's limited petroleum and natural
gas assets. Leblanc works in collaboration with Secretary Bozonnet to ensure that Keymon's energy assets are properly managed so
that their maximum capitalisation can be harnessed and not wasted. Hibiscus Petroleum stated that the country had already peaked
in production and that output was reducing annually. CEO of Hibiscus Petroleum, Jean-Loup Bellegarde stated that reduction in
output means that Keymon is essentially running out of oil and would have to either tap into the emergency reserves (which are
not plentiful) or to look outside on importing fuel (which Leblanc stated would force an increase in energy prices, the removal
of the incumbent fuel subsidy and would put significant strain on the state to import the amount of oil needed fuel Keymon.
Whilst Bozonnet stated that the transition from oil to natural gas as the nation's primary revenue source begins with the
formation of the National Gas Board.