Twinza and PNG Government Commit to Progress on Offshore Gas Project
The Papua New Guinea Government and Pasca A offshore gas project developer, Twinza, have reaffirmed their commitment to advancing the project, according to State Negotiating Team chairman Dairi Vele. Speaking at the PNG Investment Week conference in Sydney, Vele emphasized that significant progress had been achieved during negotiations.
Prime Minister James Marape announced that the Government would secure a historic 70 per cent stake in the Pasca A project. Vele explained that the agreement's terms were finalized and ready for formal endorsement. “The partnership is ready to be initialled,” he said, noting that the Petroleum Minister would present the agreement to Cabinet, while Twinza would receive a copy for their consideration.
Twinza chairman Stephen Quantrill highlighted the project's economic potential, describing it as transformative. He stated that the project could generate K15 billion in revenue for the State and contribute K30 billion to Papua New Guinea’s GDP over its lifespan.
Marape underscored the Government's commitment to maximizing benefits for Papua New Guinea while ensuring investors achieve a fair return. “The State team was mandated to secure anything above 55 per cent national benefit for all projects,” he explained.
The Pasca A agreement reflects the highest State take ever negotiated for a resource project in Papua New Guinea. Marape detailed that this includes equity, royalties, taxes, levies, local content initiatives, spin-offs, and domestic gas, collectively amounting to 70 per cent. He acknowledged Twinza and all stakeholders for their collaborative efforts.
The Pasca A gas project marks a new era in Papua New Guinea's offshore resource development, promising substantial economic benefits for the nation while showcasing its potential as a leader in the energy sector.
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