NAMCOR completes work on Kudu

The National Petroleum Corporation of Namibia (NAMCOR) this week announced that it has completed its work on the Kudu gas project. Addressing NAMCOR employees and members of the media was Board chairperson, Johannes !Gawaxab who said that NAMCOR was ready to roll with regards to Kudu.

According to the chairman, British firm BW Offshore has been selected as the preferred technical operator and will take up the 31% equity stake vacated by Tullow Oil. BW Offshore will also finance the 25% left vacant by CIECO following its departure from the Kudu project. Said !Gawaxab, “NAMCOR will cover the remaining 44% through funding from the government as outlined in the Government Support Package.”
BW Offshore has also been identified as the preferred supplier of the Floating Production System while Saipem has been identified as the preferred contractor of subsea services.
Added !Gawaxab, “Latest market data suggests rig day reductions of up to 50% while those costs associated with offshore construction have reduced by 20%,” reflecting cost improvements.
Another positive element from the Kudu project, according to !Gawaxab is that gas sales agreements are at an advanced stage as major elements were agreed upon before Tullow’s exit. “The next negotiation session scheduled for this month with downstream [partners] include aligning the draft Gas Sales Agreement with Government’s Support Package and Subsea Engineering Procurement Installation Commissioning contractor requirements,” he said.
Added !Gawaxab, “At Financial Close [December 2015], it is intended that the gas sales agreement will be executed, [with] all conditions precedent for the coming into effect of the floating production system and the subsea engineering procurement installation commissioning.”
He concluded, “the strategic importance of Kudu on Namibia can not be overemphasised as it will ensure energy security for achieving the Targets of Vision 2030 and NDP 4. Electricity tariffs will remain competitive.”
Sharing his thoughts on Ku

The National Petroleum Corporation of Namibia (NAMCOR) this week announced that it has completed its work on the Kudu gas project. Addressing NAMCOR employees and members of the media was Board chairperson, Johannes !Gawaxab who said that NAMCOR was ready to roll with regards to Kudu.
According to the chairman, British firm BW Offshore has been selected as the preferred technical operator and will take up the 31% equity stake vacated by Tullow Oil. BW Offshore will also finance the 25% left vacant by CIECO following its departure from the Kudu project. Said !Gawaxab, “NAMCOR will cover the remaining 44% through funding from the government as outlined in the Government Support Package.”
BW Offshore has also been identified as the preferred supplier of the Floating Production System while Saipem has been identified as the preferred contractor of subsea services.
Added !Gawaxab, “Latest market data suggests rig day reductions of up to 50% while those costs associated with offshore construction have reduced by 20%,” reflecting cost improvements.
Another positive element from the Kudu project, according to !Gawaxab is that gas sales agreements are at an advanced stage as major elements were agreed upon before Tullow’s exit. “The next negotiation session scheduled for this month with downstream [partners] include aligning the draft Gas Sales Agreement with Government’s Support Package and Subsea Engineering Procurement Installation Commissioning contractor requirements,” he said.
Added !Gawaxab, “At Financial Close [December 2015], it is intended that the gas sales agreement will be executed, [with] all conditions precedent for the coming into effect of the floating production system and the subsea engineering procurement installation commissioning.”
He concluded, “the strategic importance of Kudu on Namibia can not be overemphasised as it will ensure energy security for achieving the Targets of Vision 2030 and NDP 4. Electricity tariffs will remain competitive.”
Sharing his thoughts on Kudu, newly appointed Managing Director of NAMCOR, Immanuel Mulunga said, “we understand where the Minister of Finance, Hon. Calle Schlettwein is coming from. It is challenging for Government. We have not been given an indication that the project may not proceed.” Mulunga made the remark in response to a question from the floor about conflicting reports regarding the Kudu project.
A tender to drill four wells will be advertised soon. According to current planning, all the gas will be used to fire an onshore power station. 400mW will be deployed locally while it is expected that 200mW will be exported to South Africa and the remaining 300mW to Zambia through energy company CEC.

du, newly appointed Managing Director of NAMCOR, Immanuel Mulunga said, “we understand where the Minister of Finance, Hon. Calle Schlettwein is coming from. It is challenging for Government. We have not been given an indication that the project may not proceed.” Mulunga made the remark in response to a question from the floor about conflicting reports regarding the Kudu project.
A tender to drill four wells will be advertised soon. According to current planning, all the gas will be used to fire an onshore power station. 400mW will be deployed locally while it is expected that 200mW will be exported to South Africa and the remaining 300mW to Zambia through energy company CEC.

About the author

Related

By Freeman Ngulu. [email protected] 05 December 2017 - A study by the Namibia Statistics Agency...

By Freeman Ngulu. [email protected] 23 December 2016 - Dutch agricultural firm, Agriterra,...