The global owner and operator of floating production storage and offloading vessels BW Offshore signed a farm-out agreement to operate the Kudu license offshore Namibia and acquired 56% stake from the block. The remaining 44% from the block are hold by the Namibian state-owned oil company National Petroleum Corporation of Namibia. The BW Offshore’s subsidiary BW Kudu will take over the license and will pay the costs upon transfer of the field interest to the company. The final investment decision for operation of the offshore field is planned for Q4 2017, as the 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
“BW Offshore will now start the work with the Namibian government, NAMCOR, NamPower, large infrastructure investors and other stakeholders to get this very exciting project to FID”, said the CEO of BW Offshore, Carl K. Arnet. “Kudu represents another opportunity for BW Offshore to take a proactive development role in a project that will produce for 15-25 years. Falling development costs after the 2014 drop in oil prices has helped in making the project economically feasible. The electricity generated by the power station will reshape electricity supply in south-western Africa, providing a secure long-term supply to support the development of Namibia and potentially neighboring countries”, added he.
The Kudu offshore field is located approximately 90 nautical miles off the coast of Namibia. A further seven appraisal wells have been drilled and the field is estimated to contain 1C-2C-3C Contingent Resource range within the main reservoir of 755-1330-2308 Bscf respectively.
BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore has a fleet of 14 owned FPSOs and one FSO represented in all major oil and gas regions world-wide.