BHGE, announced one of the first agreements of its kind with Twinza Oil to provide full-stream support on the Pasca A gas condensate field, located off Papua New Guinea in the Gulf of Papua.
The Twinza-BHGE full-stream agreement covers services and equipment during Phase I of the Pasca A field development, including drilling services, wellheads and pressure control equipment for the fourth and final appraisal well. The appraisal well will be drilled in Q3 2017, which will be suspended as a future development well, and the final investment decision (FID) to proceed to development is expected in 2018. Post-FID, BHGE expects to provide an integrated gas-processing solution from the wells through to point of export. The full-stream offering includes a wide range of capabilities in drilling services, subsea equipment, gas processing topsides, gas compression and turbomachinery, as well as installation and commissioning services. As part of the package, BHGE was also able to offer a financial solution to enable Twinza to complete appraisal drilling and proceed to FID.
The deal leverages the full-stream capabilities of the newly combined BHGE that provides customers with a “wing to wing” partner in complex projects – from reservoir evaluation to production and end use.
Lorenzo Simonelli, President and CEO of BHGE, said, “BHGE’s competitive advantage is its ability to serve customers across the entire oil and gas value chain, providing cutting-edge technology and proven expertise to maximize customers’ business profitability. This project with Twinza is one of the first times we can truly show the value of combining our legacy strength into one unique full-stream offering.”
“Having a single point of contact and a complete offering for a complex project was one of the key reasons why we partnered with BHGE,” Huw Evans, CEO of Twinza, said. “With its full-stream capabilities, BHGE was able to propose a fully integrated services and equipment offering using a modular state-of-the-art approach, high-tech solutions and systems that ‘talk to each other’ for optimization. This greatly synergizes the execution of the project while reducing the integration risk if we had engaged several vendors for similar services and equipment.”
Pasca is the first offshore oil and gas development in PNG that will produce natural gas liquids (NGLs) in the form of condensate and LPG, and will also produce natural gas. The project is expected to spur development of relevant offshore skills and services in PNG and will prove a significant boost to the PNG economy, providing government revenues, utilizing local services and providing local employment. Additionally, the LPG produced from Pasca will be available to reduce imports and will offer a competitive alternative to imported diesel fuel for power generation.
Twinza holds 100% of the Pasca A License and has submitted a development plan for the field that will produce the resource across two phases. Phase I consists of the initial production of NGLs, including condensate and LPG, with reinjection of dry gas ahead of Phase II. During Phase II, dry gas will be exported.