WINDHOEK, Namibia – BW Offshore, via its subsidiary BW Kudu, has an agreement to take a 56% operated stake in the Kudu license offshore Namibia.
State-owned National Petroleum Corp. of Namibia (NAMCOR) will retain the remaining 44%.
BW Kudu will pay for past costs on completion of the transfer. The parties plan a final investment decision during 4Q.
Chevron discovered the Kudu gas field in 1974, 170 km (106 mi) offshore. Subsequently various operators, includingShell and Tullow Oil, drilled a further seven appraisal wells before withdrawing from the concession, after failing to secure a commercial outlet for the gas.
The Kudu field is estimated to contain resources in the range of 755-2,308 bcf. BW, NAMCOR, and state power utility NamPower are considering development via a floating production unit, with production exported through a pipeline to a new 885 MW gas-to-power plant onshoreNamibia.
Kudu could remain in production for 15-25 years. According to BW Offshore, falling development costs since the 2014 drop in oil prices have helped make the project economically feasible.
NAMCOR managing director Immanuel Mulunga added: “TheKudu gas-to-power project is a key strategic power generation project for Namibia, which will significantly reduce reliance on imported power while at the same time accelerating economic development…
“[It] will not only enable Namibia to entirely cater for its own power needs but become a net exporter of power to regional markets.”