An agreement signed by the Mineral Resources Development Company (MRDC) and oil company Twinza has cemented MRDC as an equal partner in the upcoming Pasca gas project.
Set to become Papua New Guinea’s first offshore petroleum project, Pasca will be run by the MRDC, Twinza and MRDC subsidiary Hevehe Petroleum.
Hevehe is owned by landowner companies within the MRDC Group and provincial governments. Since the Pasca project is located in Gulf Province, Gulf-related entitles will own over 50 per cent of Hevehe.
“This partnership is not just in words, but in deeds,” MRDC managing director Augustine Mano said.
“The quality of the agreement, which includes clear definitions of royalty, equity, DMO and taxation, reflects our commitment. Our sale and purchase agreement with Twinza accommodates all these aspects.”
The opening of Pasca will mark the first time liquified petroleum gases will be extracted prior to gas exportation, a move that is set to enhance energy security in the country.
Pasca also has the potential to become a hub for future offshore projects, much like the PNG LNG Project.
Mano thanked a number of dignitaries for their work on the project, including Prime Minister James Marape and Petroleum Minister Jimmy Maladina.
“Without their support, we wouldn’t have come this far,” Mano said. “We are partners of equals, with a 50 per cent stake, showing our commitment to this project.”
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