Baker Hughes, a GE Company Signs Agreement with Twinza to Provide Fullstream Support for Offshore Project in the Gulf of Papua

August 8, 2017 at 5:00 AM EDT
  • Baker Hughes, a GE company (BHGE) to provide a groundbreaking fullstream offering to include drilling services for the appraisal and development phases of the project and an agreement to supply gas processing, compression, turbomachinery, controls subsea equipment and installation services
  • The Pasca A gas-condensate field is located offshore Papua New Guinea (PNG) and is the first offshore oil and gas development in PNG with a resource currently assessed at 93 million barrels of oil equivalent (mmboe)

LONDON & HOUSTON--(BUSINESS WIRE)--Aug. 8, 2017-- Baker Hughes, a GE company (NYSE:BHGE) announced one of the first agreements of its kind with Twinza Oil Limited to provide fullstream support on the Pasca A gas condensate field, which is located off Papua New Guinea in the Gulf of Papua.

The Twinza-BHGE fullstream agreement – an industry first - 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 3Q 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 fullstream 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 fullstream package, BHGE was also able to bring its expertise to offer a financial solution to enable Twinza to complete appraisal drilling and proceed to FID.

The deal leverages the fullstream 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. The enhanced portfolio positions BHGE to create new sources of value by improving productivity and economics through integrated equipment and service offerings and meet customer needs through a fullstream lens.

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 fullstream 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,” said Huw Evans, CEO of Twinza. “With its fullstream 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 (a light crude oil) 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 natural gas liquids (NGLs), including condensate and LPG, with reinjection of dry gas ahead of Phase II. During Phase II, dry gas will be exported.

About Baker Hughes, a GE company

Baker Hughes, a GE company (NYSE:BHGE) is the world’s first and only fullstream provider of integrated oilfield products, services and digital solutions. We deploy minds and machines to enhance customer productivity, safety and environmental stewardship, while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a startup – inventing smarter ways to bring energy to the world.

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Caution Concerning Forward-Looking Statements:

This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed arrangement between BHGE and Twinza Oil Limited and the Pasca A gas-condensate field located offshore Papua New Guinea (PNG). All statements, other than historical facts, including statements regarding the expected timing and structure of the proposed transaction; any activities that may take place post final investment decision; and the scope of the fullstream offering, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “intend,” “expect,” “anticipate,” “estimate,” “believe,” “could” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the Pasca A gas-condensate field is still being developed and there is no assurance that Twinza Oil Limited will make a final investment decision to proceed with the project and (2) there is no guarantee that this fullstream project will be successful or profitable or that BHGE will be awarded future fullstream projects from Twinza or other customers. The foregoing list of important factors is not exclusive.

Any forward-looking statements speak only as of the date of this communication. BHGE does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

Source: Baker Hughes, a GE company

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