• PNG Business News

State team negotiating with Twinza Oil on project

Negotiations have begun between the state negotiating team (SNT) and Twinza Oil Ltd on the Pasca A gas project in Gulf.

Project operator Twinza said the talks were on the fiscal terms that would apply to the development of the gas-condensate field in the Gulf of Papua.

The SNT members are picked from various state agencies.

Twinza PNG country manager Roppe Uyassi said: “The company is committed to working collaboratively with the Government to deliver an agreement that allows the project to move forward toward development, while providing a higher state take than previous projects.

“Once the Pasca A gas agreement and the petroleum development license are in place, the project is well positioned to enter the front-end engineering and design phase later this year.”

Twinza is also looking forward to addressing with the SNT important non-fiscal opportunities, including domestic market commitment, third-party access to facilities and national content.

These matters are differentiated from land-based projects as Pasca A field is planned to be the first offshore development in PNG.

According to the company, Pasca A is being promoted as an infrastructure hub, whereby existing and new discoveries can use spare capacity at the installed facilities to lower their costs.

Several offshore fields, including Pandora, can be regarded as commercial if they are aggregated through Pasca infrastructure.

Such aggregation of fields can provide a steady stream of investment, jobs and liquefied petroleum gas for the domestic market.

Twinza’s technical lead in the discussions with the SNT, Erick Kowa, said: “There is a real opportunity for the parties to set the Gulf of Papua up for success through creating a framework for the co-operative development of currently stranded fields.

“Such an arrangement can provide fiscal certainty for industry players to invest in development and exploration with the confidence that resources can be commercialised.”

Source: https://www.thenational.com.pg/state-team-negotiating-with-twinza-oil-on-project/

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