Twinza Oil hopes to finalise deal
Twinza Oil, the operator of Pasca A offshore gas-condensate field in Gulf, says the company hopes to have an agreement for the project finalised in the next few months.
Papua New Guinea gas project development manager Erick Kowa said that the company looked forward to discussing opportunities and aligning with the State on a commercial development soon.
Petroleum and Energy Minister Kerenga Kua said the Pasca A project would be the next petroleum project the Government would look at developing.
Kua said a State negotiating team would start discussions with Twinza shortly.
“Twinza is ready to commence the Pasca A project gas agreement negotiations,” Kowa said.
However, he noted that the recent drop in oil prices had impacted producing projects and would no doubt impact the progress on some planned developments.
“The oil industry has seen cycles of boom and bust over the last few decades and this one is probably no different,” he said.
“However, this downturn has seen the lowest oil price experienced for some time and the concern for many is the timing for how long until oil prices bounce back to what the market considers normal.
“The low oil price presents a challenge for oil and gas companies to both cut costs in existing operations and consider delays to new projects.
“Many companies are undertaking cost cutting measures to ensure their operating costs are commercially viable in the current oil price environment.
“Those that struggle to keep their breakeven operating costs competitive within the current market may consider temporarily shutting down operations until such time a bounce back in oil price enables their business to be viable again.
“For new oil and gas projects, financial investment decisions may be delayed as investors are cautious but also because contracting companies are unable to mobilise to commence fabrication and construction.”