LONDON and HOUSTON – Baker Hughes has entered into what it claims is the industry’s first full-stream agreement in support of the Pasca A gas condensate field development offshore Papua New Guinea in the Gulf of Papua.
The company will provide services and equipment during Phase I to Australian operator Twinza Oil, including drilling services, wellheads and pressure control equipment for the fourth and final appraisal well.
Drilling of the well is due to start soon. It will then be suspended as a future development well, and the final investment decision (FID) to proceed to development should follow next year.
Post FID, Baker Hughes expects to provide an integrated gas processing solution from the wells through to point of export.
The full-stream offering covers drilling services, subsea equipment, gas processing topsides, gas compression and turbomachinery, and installation and commissioning services.
Baker Hughes also assisted Twinza with a financial solution to allow the company to complete appraisal drilling and proceed to FID.
Pasca, in 93 m (305 ft) of water in the PPL 328 lease, will be Papua New Guinea’s first offshore oil and gas development to produce natural gas liquids (NGLs) in the form of condensate and LPG, as well as producing natural gas.
The project should further development of relevant offshore skills and services in-country and provide local employment. Additionally, the LPG produced will be available to reduce the country’s imports, offering an alternative to imported diesel fuel for power generation.
Twinza, which holds 100% of the Pasca A license, has submitted a two-phase plan. Phase I initially involves production of NGLs, with reinjection of dry gas ahead of Phase II. During Phase II, dry gas will be exported.