BW Energy has agreed to pay $14 million to Aquadrill for the semisub drilling rig Leo, which was built in 2021. The rig will be repurposed as a floating production unit for the Kudu gas-to-power project off the coast of Namibia, according to the company.
In comparison to previous development concepts, BW Energy believes that repurposing will allow for an optimization of the project timeline and a significant reduction in capital investments.
“The revised development concept offers tangible financial, schedule and environmental benefits. The re-use of existing facilities also supports a substantial reduction in field development-related greenhouse gas emissions compared to a newbuild,” said Carl Krogh Arnet, the CEO of BW Energy.
“We have consequently decided to take advantage of the availability of this high-quality semi at an attractive price. The replacement of imported power with domestic power produced with natural gas will reduce Namibia`s carbon footprint and ensure power stability for the future.”
BW Energy’s revised development plan for the Kudu gas field aims to supply competitive power to a growing African market. The development of the Kudu field could provide an opportunity for the company to engage in the electricity market and potentially fully or partially assume a position as an independent power producer (IPP) through strategic partnering. The final project sanctioning is subject to realising a financing solution for the gas to power project.