State negotiating project’s equity

Business

THE State is negotiating to acquire 22.5 per cent equity in the Pasca A gas-condensate project in Gulf, according to Petroleum and Energy Minister Kerenga Kua.
Kua told The National yesterday that discussions between the state’s negotiating team and the developer Twinza Oil Ltd regarding the project “have been good so far”.
“Negotiations are ongoing,” he said.
“As prescribed by the Oil and Gas Act (1998), the State is expected to take up that equity because that’s the statutory requirement.”
Kua said the other critical issue was the appointment of the state nominee to take charge of the state equity in the project.
“The NEC (National Executive Council) has to appoint a state nominee to hold the equity,” he said. “Although it will be KPHL (Kumul Petroleum Holdings Ltd), the decision will have to be made by the cabinet.
“I am making a submission for Cabinet to make the appointment.”
Twinza Oil has some representatives in the country and others joining in the discussions from overseas via the electronic medium of communication.
A recent statement by Twinza said negotiations were on the fiscal terms that would apply to the development of the gas-condensate field in the Gulf of Papua.
Twinza was also looking forward to addressing with the State important non-fiscal opportunities, including domestic market commitment, third-party access to facilities and national content.
It said these matters were differentiated from land-based projects because the Pasca A field was to be the first offshore development in PNG.
It said Pasca A was being promoted as an infrastructure hub where existing and new discoveries could 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,” the statement said.
“Such aggregation of fields can provide a steady stream of investment, jobs and liquefied petroleum gas for the domestic market.”

3 comments

    • Pasca is the name of the proposed Condensate project in Gulf Province. It is operated by Twinza Oil. The State will exercise its rights.

  • From Twinza web page
    The majority shareholders are Clough and Kerogen Capital.

    The Clough family founded Clough Engineering in 1919. Clough Engineering entered PNG in 1989 and completed numerous oil and gas infrastructure projects including the Kutubu and Hides field development, the Kumul Marine terminal and the construction of the Napa Napa refinery.
    Kerogen Capital is an independent private equity fund manager specialising in the international oil and gas sector with approximately US$ 1.6 billion in invested and committed capital. Kerogen is currently invested in 13 countries across 4 continents with a portfolio of 11 flagship oil and gas appraisal and development projects

    Kerogen made 1st investment in Twinza in 2014

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