Twinza, State draft agreement

TWINZA Oil Ltd, the operator of Pasca A offshore gas project in Gulf, says the company and State are drafting a binding agreement for the project.
“Twinza can confirm that non-binding terms were agreed between the State negotiating team and Twinza on Sept 13 which met the State’s objectives,” Twinza said.
“The parties are working on the drafting of a binding Pasca A gas agreement.
“While Twinza acknowledges the support of the State for seeking to progress the project, Twinza also noted that the company is not in a position to confirm with any degree of certainty that the drafting process will deliver a satisfactory agreement.
“The proposed draft is not yet in a form that would allow the project to progress for several reasons, including providing a State-take substantially higher than the agreed 61-65 per cent quoted in the State’s media release.
“Twinza will provide updates as applicable and we look forward to securing a binding agreement that is acceptable to both parties and supports the development of Papua New Guinea’s first offshore oil and gas field.”
It was responding to Prime Minister James Marape’s comments last week regarding the project.
Marape, in a statement, described what he said was the outcome of negotiations for development of the Pasca A project as “significant for the country”.
He said under terms agreed to, the State would achieve 61-65 per cent of economic benefits.
Other benefits, Marape said, included early revenue, provincial and direct economic benefits through a 2 per cent development levy and royalties of two per cent of gross revenue, access to LPG (liquefied petroleum gas) discounted by 30 per cent for national consumption at five per cent, guaranteed; and a commitment to develop a detailed national content plan within six to 12 months of signing of the gas agreement.