MRDC to buy 50% stake in Pasca A gas project in PNG

Port Moresby-based Mineral Resources Development Company (MRDC) and Australia's Twinza Oil have signed agreements for MRDC to acquire up to a 50% stake in the Pasca A development project in Papua New Guinea (PNG), the companies said on May 29. The parties will also collaborate on the acquisition and development of other oil and gas assets in PNG.

The agreements, including a joint operating agreement, will become fully effective upon the receipt of PNG Independent Consumer & Competition Commission (ICCC) approval and the execution of a gas agreement for the Pasca A project. MRDC may purchase up to a 50% participating interest in Twinza’s Pasca A assets, with Twinza remaining the Pasca A project operator.

The Pasca A project is a FEED-ready offshore project in the Gulf of Papua. Twinza, the 100% owner of the project, applied for the petroleum development licence in June 2015 and has complied with all government requests, advancing the project while 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 complete, and the project will enter FEED following the approval of the Pasca gas agreement, MRDC said.

Twinza has invested over 400mn kina ($103mn) in the project. In 2023, the company announced a 35% increase in total resource size and validated the carbon dioxide sequestration potential of 200mn tonnes of CO2. The project is expected to contribute over 30bn kina to PNG’s economy and 15bn kina in revenue to the country over its lifespan.

The project is expected to flow 200,000 tonnes/year of liquids, of which 55% is condensate and 45% LPG. A second phase will produce commercial gas. Phase two will add a 0.75mn tonnes/year floating LNG facility and convert the injector well into a producer.