Twinza Oil Ltd., Perth, will begin negotiations with the Government of Papua New Guinea for a Gas Agreement for potential development of Pasca A gas/condensate field in permit PPL 328 in the Gulf of Papua.
The company acknowledged an announcement from PNG Prime Minister James Marape that the National Executive Council has endorsed Twinza’s submission for development of the field.
The agreement will set out fiscal terms to enable the project to enter front-end engineering phase which Twinza hopes will occur later this year.
The company has completed an extensive work program at Pasca, including drilling of the Pasca a4 (AD-1) well in early 2018.
The well, the fourth to be drilled on the field, confirmed the hydrocarbon volumes and the quality of the liquids-rich gas.
Pasca field, a carbonate reef reservoir discovered by Phillips Petroleum in 1968, is best known for the blow-out of the Pasca A-3 well in 1983. The well, at that time operated by Superior Oil, flowed wild for months before it cratered in on itself.
Twinza took up the permit in 2011 believing the field still contained substantial reserves. The company says the plan is to bring the field on stream via an offshore facility to produce about 200,000 tonnes/year of LPG for the domestic PNG market.
The current design for Phase 1 LPG and condensate export from the field is to use floating LNG technology. Phase 2 envisages export of LNG.
Pasca field lies in 93 m of water some 250 km west of Port Moresby.