BW Kudu farms into Kudu license, offshore Namibia

Jan. 14, 2021
BW Kudu Ltd., a wholly owned subsidiary of BW Energy Ltd. and the National Petroleum Corporation of Namibia, signed a farm-in and carry agreement to increase its working interest in the Kudu license offshore Namibia from to 95% from 56%.

BW Kudu Ltd., a wholly owned subsidiary of BW Energy Ltd. and the National Petroleum Corporation of Namibia (NAMCOR), signed a farm-in and carry agreement to increase its working interest in the Kudu license offshore Namibia from to 95% from 56%. NAMCOR will retain the remaining 5% working interest.

The agreement gives NAMCOR the opportunity to acquire an additional 5% working interest post first gas, while BW Kudu will pay $4 million at completion of the transaction and carry NAMCOR’s share of development costs until first gas. The new arrangement will enable gas sales arrangements and increases the likelihood of securing financing for the upstream Kudu development, BW said.

Kudu gas field, discovered in 1974, lies about 130 km offshore in the southern parts of Namibia and contains an estimated 1.3 tcf of gas (P 50).

The agreement is subject to the approvals of BW Kudu’s and NAMCOR’s boards as well as Namibian regulatory authorities.