Tullow to spud well in Kudu field off Namibia

April 23, 2007
Tullow Oil PLC, London, said it has reached agreement to sell to Japan’s Itochu Corp. a 20% interest in its Republic of Namibia Production License No. 001, which contains giant Kudu gas field, off Namibia.

Tullow Oil PLC, London, said it has reached agreement to sell to Japan’s Itochu Corp. a 20% interest in its Republic of Namibia Production License No. 001, which contains giant Kudu gas field, off Namibia.

Itochu will pay 40% of the cost of two appraisal wells planned this month to probe the upside potential of Kudu field and will provide other development financing, including further financial payments depending on the ultimate volume of reserves developed.

The transaction is subject to partner preemption rights and Namibia’s approval, Tullow said.

The two-well appraisal program is to establish commercially productive flow rates from the extensive Kudu East reservoir originally tested by the Kudu-5 well (OGJ Online, Sept. 6, 2006).

If the flow rates can be established, Tullow said, “a multi-tcf upside potential will be demonstrated,” thereby expanding Kudu field’s development options.

Pride International’s Pride South Seas semisubmersible is scheduled to arrive on location in late April. Each well is expected to take 80 days to drill.

In 2004 Tullow’s subsidiary Energy Africa, which operates Kudu, concluded a joint development agreement with National Petroleum Corp. of Namibia and state-owned utility NamPower, calling for field development and piping of the gas to shore. There it will be treated and delivered to an 800-Mw electric power station NamPower will develop and operate near Oranjemund.