Papua New Guinea and Twinza Oil Sign Historic Pasca A Gas Project Agreement
Papua New Guinea has taken a significant step in the energy sector with the signing of an agreement to develop the country’s first offshore gas project, Pasca A, in the Gulf Province. The signing between the State and Twinza Oil Limited took place yesterday in Port Moresby.
According to Prime Minister James Marape, the Pasca A project is expected to generate over K500 million annually in revenue, create approximately 500 full-time jobs, and bring substantial benefits to Gulf Province locals. Marape hailed the agreement as a demonstration of the government’s commitment to ensuring optimal outcomes for Papua New Guinea. The Pasca field, discovered in the 1960s, has undergone decades of assessment and planning to reach this stage.
The project will be rolled out in two phases, with the initial phase focusing on liquids production and the second phase transitioning to liquefied natural gas (LNG) production. Petroleum Minister Jimmy Maladina highlighted that phase one would unlock an estimated 135 million barrels of oil equivalent, while phase two would tap into an additional 115 million barrels. He further emphasized the project's emphasis on local employment, with a target of 80 percent Papua New Guinean workforce participation within five years and 25 percent of project suppliers being locally-owned businesses.
In May, a partnership agreement was formalized between Mineral Resources Development Company Limited (MRDC) and Twinza Oil, enabling MRDC to acquire up to 50 percent participation in the project. Twinza Oil retained its role as the project operator. A joint venture agreement to secure national participation is expected within 90 days, with strict conditions set to ensure timely final investment decisions and licensing.
Prime Minister Marape also announced government commitments to support Gulf Province’s development, including a K60 million business development grant to enhance Kikori and Kerema as hubs for the project and an additional K150 million infrastructure development grant over three years. Marape expressed optimism about the project's potential to boost energy security, meet domestic market needs, and create export opportunities while paving the way for further exploration in the Gulf of Papua.
Twinza Oil Limited’s executive chairman, Stephen Quantrill, described the signing as a milestone for the company, acknowledging the 16 years of preparation involved. Twinza, headquartered in Perth, Australia, operates offices in Port Moresby and Singapore and is poised to advance the Pasca A project.
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