Align gas projects, says Twinza

 PANDORA and other offshore gas fields need to be aligned to the Pasca A facilities to be economic, according to Twinza Oil Ltd.

Twinza had applied through the PNG gazettal process for the petroleum retention license (PRL) that covered Pandora A and B fields in November 2018.

Twinza in a statement said the company had been working with the Department of Petroleum and Energy since its application for Pandora on how best to commercialise the discovered, but stranded, gas fields that lie offshore. “Pandora itself has sat undeveloped for over 30 years, being uneconomic as a standalone project,” according to Twinza.

“Pandora and other offshore gas fields will almost certainly need to tie-in to the Pasca A facilities to be economic.

“Twinza believes that the ownership of the Pandora fields should be closely aligned to that of Pasca A to ensure an optimum development and to simplify commercial discussions for access to the Pasca infrastructure.” The front-end engineering and design (Feed) phase on Pasca A was due to commence after the gas agreement was signed and Pandora would need to be included in the engineering design at this stage.

The additional cost of accommodating Pandora in the Feed process could only be borne by the Pasca A joint venture if: the Pandora award is made around the time of the Pasca A Gas Agreement signing and the operatorship is awarded to Twinza, with ownership of the two licenses broadly aligned. “Consequently, as part of the Pasca A gas agreement negotiations which concluded on July 6, 2021, Twinza requested that the Minister for Petroleum Kerenga Kua, announce the Pandora license award ahead of the signing.

“If awarded operatorship, Twinza will provide a free carry for the Gulf province of a 2 per cent ownership share in the Pandora license through a MoU signed in mid-2020 with the Gulf Governor, the Hon Chris Haiveta, a vocal supporter of gas aggregation.”

Twinza chairman and chief executive officer Ian Munro said: “The Minister for Petroleum has a unique opportunity to align the operatorship in Pasca and Pandora to ensure that gas aggregation in the Gulf of Papua can be delivered for the benefit of Papua New Guinea.

“Industry is closely watching the Pandora license award to gauge transparency and whether the Government will support a proven offshore operator and stimulate additional exploration and development investments.”

Next: Oil Search paid PNG landowner companies around K2 billion

Previous Post Next Post