Co-operation Agreement With Gulf Provincial Government

Published on 4th September, 2020

Co-operation Agreement With Gulf Provincial Government
Minister for Petroleum and Energy, Hon. Kerenga Kua, Governor of Gulf Province, Hon. Chris Haiveta and Twinza CEO Ian Munro at signing of MOA

Twinza has entered into a Memorandum of Agreement (MOA) with the Gulf Provincial Government of Papua New Guinea. The agreement, that was signed by the Governor of Gulf Province, Hon. Chris Haiveta MP and Ian Munro, Chairman and CEO of Twinza Oil, establishes a co-operative relationship between the parties that can deliver material benefits to the province and the country.

The MOA provides for gas from Pasca A and other Gulf of Papua fields to supply a power-to-shore solution funded by Gulf Province investment entities. There is potential to achieve power generation of up to 200MW over time as discovered and new gas fields are aggregated through the Pasca A infrastructure. Twinza and the Gulf Province have a shared vision that Pasca can become an infrastructure ‘hub’, whereby existing discoveries utilise spare capacity to lower development costs. It can be expected that progress on Pasca A will spur new exploration activity in offshore waters.

The signing was attended by the Hon. Kerenga Kua, Minister for Petroleum and Energy, who is supportive of the MOA and development initiative.

The MOA, whilst separate from the State Negotiating Team negotiations for the Pasca A Gas Agreement, is likely to influence outcomes regarding National Content and Domestic Market Commitment. There is expectation that the Gas Agreement will be concluded by the end of this month which will allow the Project to move in to FEED before year end. Twinza is committed to delivering an agreement that provides a higher State-take than previous resource projects.

Twinza PNG Country Manager, Roppe Uyassi, stated that,

“The signing of this MOA is an exciting opportunity that can deliver significant benefits to Gulf Province through the provision of gas and LPGs for power, which will promote industry and employment in the region. Twinza is committed to working collaboratively with Gulf Province on delivering outcomes for power generation and aggregation to ensure a long-term, reliable and cost-effective supply of power.”