State, Twinza finalising Pasca A project deal

By SHIRLEY MAULUDU
AN agreement for the Pasca A project in Gulf is expected to be signed in the next two weeks, an official says.
Department of Petroleum and Energy secretary David Manau told a media workshop in Port Moresby yesterday that the State and project operator, Twinza Oil Ltd, would finalise the agreement next week.
“For Pasca, we have completed all the negotiations and the gas agreement is in its draft form,” he said.
“As of last night (Tuesday), in a briefing with Prime Minister James Marape, the state negotiating team (SNT) was given up until next week to sit with Twinza and complete the gas agreement for a possible NEC (National Executive Council) announcement in the following week.”
Petroleum Minister Kerenga Kua last week told The National that lawyers for both Twinza Oil Ltd and the State were working on finalising the agreement.
It was announced early last month that lawyers would be done finalising the agreement with a gas agreement ready to be signed on July 29.
The US$800 million (about K2 billion) Pasca A gas project in Gulf is 95km south of the province in the Gulf sea, under 100-metres of water.
Volume of reserves are 0.4 billion cubic feet.
The project’s lifespan is 12 years.
Kua described the deal reached between the SNT and company, as by far the best in terms of petroleum resource development.
“We delivered an agreement within the petroleum space, which is a new precedent from the existing projects,” he said.
“This project will give us a total benefits package of 55 per cent, calculated on what financial modellers and economists called a nominal cash flow basis.”