Pasca A Gas Agreement Yet To Be Finalised Despite Instructions From The Minister For Petroleum

Published on 24th August, 2021

The Minister for Petroleum, the Hon. Kerenga Kua, announced in Parliament a 7 day period for the State Negotiating Team and Twinza to meet to finalise drafting of the Pasca A Gas Agreement. The deadline expired on the 17th August without the State Negotiation Team (SNT) making themselves available to meet with Twinza. A further 7 days have now passed without a meeting, despite continued efforts by Twinza.

This lack of engagement, with a Company which has invested over K350 million in PNG to date and confirmed Pasca A commerciality through drilling the A4 well, is disappointing. Twinza will continue to honour the deal struck on the 6th July and announced by the Prime Minister, the Hon. James Marape on the 13th July 2021.

As stated by Minister Kua on the 13th July, Twinza can again confirm that the Gas Agreement delivers all of the Government’s stated objectives from the project and would provide the highest State take of any resource development in PNG, over 60% of project value (55% nominal State take).

Twinza is continuing to seek clarity from the Minister for Petroleum, who is responsible for closing-out the routine drafting review, when there will be support for continued foreign direct investment on Pasca, and that the State will honour the deal of the 6th July 2021. The Gas Agreement has been ready for signing since this date.

Chairman and CEO, Ian Munro, commented,

“despite the Twinza team being on standby 24/7, and the clear instructions from the Minister for both sides to meet within the specified 7 days, the SNT has not made themselves available even once for a final page-turn of the agreement.”

“Twinza remains hopeful that both parties can honour the terms and agreement of the 6th July 2021 and that we can move immediately in to the FEED phase of the project. The Company has a history of delivering in PNG: successfully drilling an appraisal well on the Pasca field, being awarded a life-of-project environmental permit and now agreeing fiscal terms which deliver the highest State take of any resource project in PNG. With a supportive Government, we look forward to delivering PNG’s first offshore oil and gas production in 2025.”