MRDC Group Celebrates Gas Agreement for Pasca Project

The Mineral Resources Development Company (MRDC) and its subsidiary, Hevehe Petroleum, proudly announce the signing of the Gas Agreement for the Pasca Gas Project. The agreement, executed by the Head of State at Government House today, marks a significant milestone in the development of Papua New Guinea’s first offshore petroleum project, located in the Gulf Province.

This landmark agreement represents a major advancement for Hevehe and the MRDC Group, solidifying their position as equal partners with Twinza in the project. This is the first time MRDC is participating as an investor, a pioneering move for a national company in PNG.

Hevehe Petroleum will leverage its extensive experience from major projects such as Kutubu, Moran, Gobe, and PNG LNG, and its collaborations with industry giants like Chevron, ExxonMobil, Oil Search, and Santos, to ensure the success of the Pasca project.

As the first offshore development, it has the potential to become a hub for future offshore projects, similar to how Kutubu and PNG LNG have catalyzed onshore oil and gas developments.

For the first time, LPGs will be extracted prior to gas exportation, enhancing energy security and creating new business opportunities for the group.

Hevehe is owned by landowner companies within the MRDC Group and provincial governments. Gulf related entities will own over 50% of Hevehe, including a 10% direct equity stake for Gulf provincial government. The Western Provincial Government also has ownership through MROT, while landowners will receive a separate 2% free equity.

MRDC Managing Director, Mr. Augustine Mano, expressed his gratitude to the Prime Minister, Petroleum Minister Jimmy Maladina, and SNT Chairman Dairi Vele for their leadership during the negotiations. He also thanked the board of directors for their vision and confidence in the management team. Each subsidiary board made independent investment decisions based on their capacity to fund the project, demonstrating strong support for the group.

“This partnership is not just in words, but in deeds. 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.

“In Hevehe, more than 50% equity is owned by Gulf-related entities such as PRK, Pipeline, Gobe, and the Gulf Provincial Government, which holds 10%. The remaining 50% includes our subsidiaries in mining and PNG LNG. Our landowners are now risk-takers in this significant project, marking a milestone for us.

I want to thank Dairi Vele for his excellent work, my Governor for Gulf for his steadfast support, and the Prime Minister for his guidance. Without their support, we wouldn’t have come this far. We are partners of equals, with a 50% stake, showing our commitment to this project,” said Mr. Mano.