BW Offshore has announced that its subsidiary BW Kudu has entered into a farm-out agreement for a 56% stake of the Kudu license offshore Namibia. Namibian state-owned oil company National Petroleum Corporation of Namibia 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.
“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 Carl K. Arnet, CEO of BW Offshore.
“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”, Arnet added.
The final investment decision is planned for the fourth quarter of 2017.