MINERAL Resources Development Company Limited (MRDC) and Twinza Oil Limited (Twinza) proudly announced the execution of agreements for MRDC to acquire up to a 50% participating interest in Twinza’s Pasca A Project. Additionally, both companies agreed to collaborate on future oil and gas opportunities in Papua New Guinea.
Announcement
MRDC and Twinza declared they had secured all necessary internal approvals and finalized a series of binding agreements. These agreements would allow MRDC to obtain up to a 50% participating interest in the Pasca A Development Project. Moreover, the companies committed to jointly pursue the acquisition and development of other oil and gas assets in Papua New Guinea.
These agreements, including a Joint Operating Agreement, were set to become fully effective pending several conditions, such as approval from the PNG Independent Consumer & Competition Commission (ICCC) and the execution of a satisfactory Gas Agreement for the Pasca A Project. Twinza would continue as the operator of the Pasca A Project.
Prime Minister of Papua New Guinea, James Marape, expressed his support, stating, “I welcome the transaction between MRDC and Twinza to develop the Pasca A asset and to work together on other opportunities in the Gulf of Papua and the country. Pasca is a priority energy project for our government, and we look forward to seeing its development for the benefit of the people of PNG.”
MRDC Managing Director Augustine Mano highlighted the significance of the deal, noting, “This transaction marks an important step in MRDC’s evolution towards a more engaged and active asset owner and manager. We are delighted to work with Twinza and look forward to advancing Pasca A and other opportunities in the future.”
Twinza Executive Chairman Stephen Quantrill added, “We are pleased to announce these agreements to collaborate with MRDC on oil and gas developments in PNG, beginning with the Pasca A project. We thank Prime Minister Marape and the PNG government for their support and look forward to a successful partnership.”
About the Pasca A Development Project
The Pasca A Development Project is a large, FEED-ready offshore project in the Gulf of Papua. Since applying for the Petroleum Development Licence (PDL) in June 2015, Twinza has steadily advanced the project, complying with government requests and negotiating the Gas Agreement since 2020.
The Pasca A field is fully appraised, with four wells drilled and resources independently assessed by Gaffney, Cline & Associates. Pre-FEED studies are completed, and the project is poised to enter FEED following the Gas Agreement’s approval.
Twinza has invested over K400 million in the project, anticipating permitting and fiscal certainty. In 2023, the company announced a 35% increase in total resource size and validated the potential for carbon dioxide sequestration, potentially making Pasca A PNG’s first carbon-negative hydrocarbon project.
When operational, Pasca A is expected to generate over K500 million annually for the PNG State, create around 500 permanent jobs, and significantly boost foreign currency inflows. The project is projected to contribute over K30 billion to PNG’s economy and K15 billion in revenue over its lifetime.
Economic and Environmental Impact
The Pasca A Project stands as a transformative force for Papua New Guinea’s economy. This ambitious offshore venture, poised to generate over K500 million annually, promises a significant economic uplift. The project’s development marks a pivotal step towards energy independence, bolstering the nation’s financial stability and injecting much-needed foreign currency into the economy.
The collaboration between MRDC and Twinza underscores a strategic partnership that aligns with PNG’s broader economic goals. By securing up to a 50% participating interest in the project, MRDC not only fortifies its role as an active asset manager but also ensures that the benefits of this project will directly support local communities. This initiative is expected to create approximately 500 permanent jobs, enhancing employment opportunities and fostering skill development within the region.
Furthermore, the Pasca A Project’s commitment to carbon dioxide sequestration positions it as potentially PNG’s first carbon-negative hydrocarbon project. This aligns with global sustainability goals and places PNG at the forefront of innovative, environmentally responsible energy production.
As the Pasca A Project moves forward, it is set to contribute over K30 billion to the national economy and K15 billion in revenue over its lifespan. This project is not just an economic venture but a beacon of hope for PNG’s future, promising growth, stability, and a greener tomorrow.
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