PASCA project expected to generate first revenue by 2028

Pasca A field well in Gulf Province (Supplied: Twinza)

Papua New Guinea’s soon to be offshore gas field in the Pasca A Project looks set to yield first revenue by 2028 if the government awards the gas agreement and petroleum development license before the end of this year.

The project managed by Twinza Oil is expected to generate at least K30 billion for the economy and K15b revenue over its life span.

Twinza executive chairman Stephen Quantrill speaking of the latest updates on the progress of Pasca during the opening of PNG Business Conference, said the project will soon be industrialized.

“The project will be developed using standard facilities, including a jack-up platform with topsides and an FSO initially for the production of liquids, and then floating LNG for the gas development to follow soon after first liquids,” Quantrill told the business forum in Brisbane, Australia.

“If the gas agreement and petroleum development license are awarded in mid-2024, the first PNG state revenues will be received in 2028.

“Once developed, Pasca will make a very meaningful impact on the PNG state revenues for about 15 to 20 years from first production.”

Twinza;s team of technical experts at the Pasca A field well in Gulf Province (Supplied: Twinza)

In May this year, Twinza and Mineral Resources Development Corporation [MRDC] signed a K45b deal which allowed MRDC for 50 per cent acquisition in the Pasca A Project whilst also giving Twinza the opportunity to develop future gas and petroleum prospects in PNG.

Mr. Quantrill said the transaction of this agreement, which includes for joint operation between the Gulf provincial government and all stakeholders has been completed on commercial terms.

“MRDC's track record as a strategic investor and the strength of the relationships that come with MRDC participation warranted our entering into a strategic alliance alongside the strategic investment,” he said.

“It is also a way of ensuring that a greater proportion of the benefits of the Pasca project flow to the people of Papua New Guinea.”

He said Pasca also met the Environment, Social and Governance [ESG] requirements as it is being designed as a carbon-negative project that will generate significant revenues and GDP impact for PNG.

The low-hanging fruit resources project is ready to move ahead as PNG's next big project development.

“We're delighted to have entered into a strategic alliance with MRDC. We remain persistently ready to engage with the government of PNG to finalise our regulatory requirements and to promptly proceed to feed and development, with a significant contribution to PNG economy expected to be over K31.”