By OGJ editors
HOUSTON, July 13 -- Tullow Oil PLC, Dublin, reported that its subsidiary Energy Africa, operator of Kudu gas field off the southern Africa nation of Namibia, has begun Phase II predevelopment following the signing of a joint development agreement with Namcor—the National Petroleum Corp. of Namibia and Tullow's 10% partner in the field—and with Namibian power utility company NamPower relative to the planned development of Kudu field as part of a gas-to-power project.
Gas would be piped to shore for treatment and delivery to an 800 Mw power station near Oranjemund to be developed and operated by NamPower with technical assistance from South Africa utility Eskom.
Produced electricity would be sold to NamPower and Eskom for resale to their markets in second half 2009 if the project gets the go-ahead. NamPower and Eskom also signed an agreement to enter into negotiations for power purchase and other deals
The primary objectives of Phase II are to confirm the viability of the project, to complete detailed engineering and design work, and to procure appropriate financing leading to a final investment decision by yearend 2005.
