BW Energy has signed an agreement to acquire the 2021-built semisub drilling rig Leo from Aquadrill for $14m. The company plans to repurpose the rig as a floating production unit for the Kudu gas to power project offshore Namibia.
BW Energy believes repurposing will enable an optimisation of the project timeline and significantly reduce capital investments compared to previous development concepts.
“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.