State, Twinza Oil finalising Pasca A gas deal

By SHIRLEY MAULUDU
THE gas agreement for the Pasca A gas project is expected to be signed next week, according to Petroleum Minister Kerenga Kua.
Lawyers for project operator, Twinza Oil Ltd, and the State were working on finalising the agreement, Kua told The National yesterday.
It was announced early this month that lawyers would be done finalising the agreement with a gas agreement ready to be signed today (July 29).
“If the lawyers had given me the papers on Monday (July 19), I will then be presenting them to NEC (National Executive Council) that meets today (yesterday) so we can sign the agreement tomorrow (today),” he said.
“But the lawyers are still agreeing to wordings in the agreement so we should have a gas agreement signed next week.”
The US$800 million (about K2.7bil) Pasca A gas project in Gulf is 95km south of the province in the Gulf Sea, about 100m under water.
Kua had previously said volume of reserves was 0.4 billion cubic feet.
The project’s lifespan is 12 years.
Kua described the deal reached between the state negotiating team and company, as, by far, the best in terms of petroleum resource development in the country.
“We delivered an agreement within the petroleum space, which is a new precedent from the existing projects,” he said.
“This project, throughout its life, will give us a total benefits package of 55 per cent, calculated on what financial modelers and economists called a nominal cash flow basis.
“That 55 per cent is based on an oil price of US$50 (about K171.47) a barrel.”
Twinza country manager Roppe Uyassi had previously told The National that the project’s front end-engineering design (Feed) would begin in third quarter of this year.
He said the final investment decision (FID) would be made in the fourth quarter of 2022 with the first production planned for the third quarter of 2025.