Tullow Oil concludes agreement for Kudu field

Tullow Oil subsidiary Energy Africa has concluded a joint development agreement with the National Petroleum Corp. of Namibia (Namcor) and NamPower, the Namibian power utility company, to develop the offshore Kudu field as part of a gas-to-power project. The Kudu field lies 130 km offshore southwest Namibia.

Jul 6th, 2004

Tullow Oil subsidiary Energy Africa has concluded a joint development agreement with the National Petroleum Corp. of Namibia (Namcor) and NamPower, the Namibian power utility company, to develop the offshore Kudu field as part of a gas-to-power project. The Kudu field lies 130 km offshore southwest Namibia.

The project involves offshore development of the Kudu gas field by Energy Africa and Namcor, and piping gas to shore for treatment and delivery to an 800 MW power station to be developed and commercially operated by NamPower near Oranjemund. The produced electricity will be sold to NamPower for resale into the Namibian market and to Eskom for the South African market.

The primary objectives of the next phase of the Kudu gas field development are to confirm project viability, complete detailed engineering and design work, and procure appropriate financing, leading to a final investment decision by the end of 2005.

According to Rhidwaan Gasant, managing director of Energy Africa, "This agreement represents a significant milestone in commercializing the proven gas reserves in Kudu and in proving up additional reserves, potentially unlocking significant value for the Tullow group."

Energy Africa operates the Kudu gas field with 90% interest. Namcor holds 10% interest.

SeeOffshore gas could quench Namibia's thirst for energy in the October 2003 Offshore issue.

07/06/04

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