Pasca A Project in Papua New Guinea to Advance with $1.5 Billion Investment
The Pasca A Project, led by Twinza Oil and the Mineral Resources Development Corporation (MRDC) in Papua New Guinea, is set to advance in two phases with an estimated cost of $1.5 billion USD. The development plan for this significant project has been outlined by Twinza’s Chief Executive Chairman, Stephen Quantrill.
Quantrill explained that the project will commence with the production of liquids before transitioning to liquefied natural gas (LNG) through a floating LNG facility. “We’ve adopted an innovative and straightforward development plan, optimized for safety, quick revenue generation, and cost efficiency,” Quantrill stated.
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| Photo by Twinza Oil) |
The infrastructure for the project will involve the development of three wells. The operation will take place in water approximately 90 meters deep, with the reservoir crest situated around 2,000 meters below sea level, and the gas-water contact about 2.4 kilometers deep.
Twinza has been a committed investor in the Pasca A Project since its inception in 2008, initially applying for an exploration license. To date, the Australian oil company has invested over K400 million, funding extensive work including drilling, seismic evaluations, and other specialized assessments. These evaluations have been externally validated by Gaffney, Kline & Associates, with the latest update provided in early 2023.
The project is expected to contribute significantly to the economy of Papua New Guinea, with first revenues anticipated in 2028. In mid-2024, Twinza and MRDC entered into a K45 billion agreement, designed to facilitate a mutually beneficial relationship between the investor and the PNG government in managing the project's resources.
Quantrill emphasized the need for regulatory certainty to secure investment, highlighting that regulatory approvals, including the gas agreement and petroleum development license, are crucial for advancing the project. “Investment requires regulatory certainty, and these approvals are on our critical path,” he noted.
The Pasca A Project is recognized by the PNG government as one of the top five new resource projects, characterized as a “low-hanging fruit” due to its straightforward offshore development in shallow waters of the Gulf of Papua, about 90 kilometers from shore.
Development will utilize standard facilities, including a jack-up platform with topsides and a Floating Storage and Offloading (FSO) unit for initial liquid production, followed by the deployment of floating LNG for gas development.
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