Nabilah S
The Pasca A Project in Papua New Guinea, spearheaded by Twinza Oil and the Mineral Resources Development Corporation (MRDC), is poised to progress in two distinct phases with an estimated total cost of $1.5 billion USD. The development blueprint for this substantial undertaking has been detailed by Twinza’s Chief Executive Chairman, Stephen Quantrill.
According to Quantrill, the project will initially focus on the production of liquids, followed by a transition to producing liquefied natural gas (LNG) via a floating LNG facility. “We’ve embraced an innovative and straightforward approach to development, designed to prioritize safety, accelerate revenue generation, and maintain cost efficiency,” Quantrill remarked.
The project infrastructure will include the development of three wells, with operations planned in water depths of approximately 90 meters. The reservoir crest lies around 2,000 meters below sea level, and the gas-water contact is located about 2.4 kilometers deep. Twinza has been a dedicated investor in the Pasca A Project since it began in 2008, initially applying for an exploration license.
Since then, the Australian oil company has invested over K400 million, funding a range of extensive activities, including drilling, seismic evaluations, and other specialized assessments.
These evaluations have been independently validated by Gaffney, Kline & Associates, with the most recent update provided in early 2023. The project is expected to make a substantial contribution to the economy of Papua New Guinea, with first revenues anticipated in 2028. In mid-2024, Twinza and MRDC entered into a K45 billion agreement. agreement, designed to facilitate a mutually beneficial relationship between the investor and the PNG government in managing the project’s resources.
Quantrill underscored the importance of regulatory certainty for securing investment, emphasizing that regulatory approvals—such as the gas agreement and petroleum development license—are pivotal for the project’s progress. “Investment hinges on regulatory certainty, and these approvals are essential on our critical path,” he remarked.
The Pasca A Project is acknowledged by the PNG government as one of the top five new resource initiatives, described as a “low-hanging fruit” due to its relatively straightforward offshore development in the shallow waters of the Gulf of Papua, approximately 90 kilometers from the coast.
The development will employ conventional facilities, including a jack-up platform with topsides and a Floating Storage and Offloading (FSO) unit for the initial production of liquids. This will be followed by the deployment of floating LNG technology for gas development.
