BW Offshore: Farm-in to Kudu field in Namibia
February 07 2017 - 1:30AM
BW Kudu Limited (a wholly owned
subsidiary of BW Offshore) has entered into a Farm-Out Agreement
for a 56% stake of the Kudu license offshore Namibia. National
Petroleum Corporation of Namibia (NAMCOR), 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 pay for past costs upon transfer of
the field interest to the company. The final investment decision is
planned for Q4 2017.
"BW Offshore will now start the
work with the Namibian government, NAMCOR, NamPower (the Namibian
power utility), large infrastructure investors and other
stakeholders to get this very exciting project to FID" said Carl K.
Arnet, CEO of BW Offshore.
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. 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. 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 Carl K. Arnet.
NAMCOR's Managing Director
Immanuel Mulunga said the project will play a fundamental role in
shaping the energy dynamics of Namibia. "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 further
remarked that the project has the potential of strengthening
Namibia's international standing: "The Kudu Gas to Power Project
will not only enable Namibia to entirely cater for its own power
needs but become a net exporter of power to regional markets".
For further information, please
contact:
Carl K. Arnet, CEO, +65 6570 3823
Knut R. Sæthre, CFO, +47 911 17 876
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 & gas regions world-wide. BW
Offshore has a long track record on project execution and
operations. In more than 30 years of production, BW Offshore has
executed 38 FPSO and FSO projects. The company is listed on the
Oslo Stock Exchange.
This information is subject
to the disclosure requirements pursuant to section 5 -12 of the
Norwegian Securities Trading Act.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: BW Offshore via Globenewswire
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