State team looking to seal deal on gas fields

A State negotiating team led by Chief Secretary Isaac Lupari is keen to conclude negotiations on three gas fields soon and enter into final investment decisions (FID) by early 2020.
Lupari said: “We want to complete negotiations with all three operators by early next year.”
The three natural gas fields – Pasca A (Twinza Oil), P’nyang (ExxonMobil) and Elk/Antelope (Total SA) – are approaching the project development stage.
Lupari said Pasca A in Gulf and P’nyang in Western had submitted their application for petroleum development licence (APDL).
He said Total was expected to submit its application next month.
The team would prepare and enter into negotiations with each of the project development proposers and establish a gas agreement for each of the projects.
Following a meeting with the three companies yesterday, Lupari said: “We have presentations from all three companies on the work they have done, whether they are ready for us to commence negotiation.
“We want to make sure they give us all the information. Besides that, the state team will also be looking at the matrix.”
LNG expert and Facts Global Energy chairman Dr Fereidun Fersharaki yesterday indicated there was a window of opportunity to enter into FID (for financial close) with the operators by the end of 2019 or early 2020. The SNT’s main role is to negotiate terms for the three project gas agreements.
Currently the team is looking at a matrix which is being collated by the State technical working group (which comprises key people from Government agencies). The matrix will be submitted to SNT by the end of this week and will form the basis or strategy for negotiation by the State with operators.
Earlier, Prime Minister Peter O’Neill had said the Government was committed to concluding negotiations with the developers.
“I wish to encourage the developers to work closely with the State negotiating team,” he said.
“This is so the three natural gas projects can be developed to bring benefit to the developers, financiers, landowners and the country.”