Saturday , July 13 2024

Norwegian company buys stake in Kudu Gas

Norwegian supplier of floating production services to the oil and gas industry, BW Offshore has confirmed involvement in the Kudu gas field as BW Kudu Limited, a wholly owned subsidiary of BW Offshore.

BW Kudu Limited has entered into a Farm-Out Agreement for a 56% stake of the Kudu license offshore Namibia with National Petroleum Corporation of Namibia (NAMCOR).

Nasdaq company, GlobeNewswire, reported last week that the Namibian state-owned oil company, will hold the remaining 44% of the license. “BW Kudu will become operator of the Kudu license. BW Kudu will also pay for past costs upon transfer of the field interest to the company,” according to the website.

“The final investment decision is planned for the last quarter of 2017. BW Offshore will now start the work with the Namibian government, NAMCOR, NamPower, large infrastructure investors and other stakeholders to get this project to Final Investment Decision,” said Carl Arnet, CEO of BW Offshore on their webpage.

NAMCOR’s Managing Director Immanuel Mulunga said the project will play a fundamental role in shaping the energy dynamics of Namibia and change strengthen its international standing. “The Kudu 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,” he said.

The Kudu field is estimated to contain 1C-2C-3C Contingent Resource range within the main reservoir (“K3”) of 755-1330-2308 Bscf respectively. The Kudu Gas to Power project calls for gas to be produced by a Floating Production Unit before being exported by pipeline to a new 885 MW gas to power plant onshore Namibia.

“Kudu represents another opportunity for BW Offshore to take a proactive development role in a project that will produce for 15-25 years,” Arnet said.

The Kudu field was discovered by Chevron in 1974 approximately 170 km off the coast of Namibia. A further seven appraisal wells have been drilled since then by various oil companies including Shell and Tullow who subsequently withdrew from the project.

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