Photo credit: Petroleum Exploration Society of Australia
According to Twinza chairman Stephen Quantrill, the Pasca A oil and gas project in the Gulf is estimated to bring in about K8.6 billion in direct revenue to the government throughout the project's lifetime.
A total of K500 million in tax and royalties is projected to be paid in a year, according to Quantrill, who spoke at the 2021 Mining and Petroleum Conference.
He stated that the project's final investment decision (FID) will be made in 2023.
“The Prime Minister noted that the country is open for business and, we are here and believe in PNG’s bright future,” he said.
“We are working to achieve alignment and certainty so that 2022 can be Pasca’s time to shine for PNG.
“This is an important project in the scheme of the country’s economic future.
“Over the life of the project, we believe that the direct revenue to PNG would be over K8.6 billion resulting in over six per cent increase to PNG’s annual direct revenues over the life of the project.
“It has a forecast of expansion of the PNG economy through a multiplier effect of more than two to three times PNG’s share of direct project revenues.
“We expect to contribute K500 million annually to taxes and royalties.
“We have a development cost of about K5 billion.”
Quantrill estimated that his business would spend roughly K600 million in Papua New Guinea during construction, with an additional K400 million in operational expenditures.
“There will be further benefits that will flow from the project with the expansion of the offshore resource industry as we are the first mover in that space to provide an opportunity in the development of adjacent assets and also with the ability to supply PNG with domestic liquefied petroleum gas.”
According to Quantrill, the project was a straightforward build in shallow water offshore.
“We can use industry-standard technology in a phased development with an initial extraction of liquids followed by the second phase of flouting LNG development in the second stage.”
Reference: Pacific Mining Watch (5 December 2021). “Gas project to bring in K8 billion into PNG Economy”.
