The Namibian government is actively working to encourage cooperation between global energy giants TotalEnergies, Shell, and BW Energy, the operator of the Kudu gas project, to develop the country’s substantial natural gas reserves in the Orange basin.
Petroleum Commissioner Maggy Shino told Mining & Energy that the government is not forcing collaboration, but rather “encouraging synergies”.
This comes in response to recent reports suggesting that Namibia is compelling TotalEnergies and Shell to work closely with BW Energy on a joint development plan for the vast reserves of natural gas discovered in the Orange basin.
Over the past 20 months, TotalEnergies and Shell have identified an impressive 8.7 trillion cubic feet of gas in the prolific deep-water region of the basin, as well as billions of barrels of oil, further enhancing the region’s energy potential.
At the same time, BW Kudu General Manager Klaus Endresen has announced that Namibia is on track to achieve first gas-to-power from Kudu by 2027.
Energy experts believe that the multiplication of gas reserves could position the Kudu Project as a regional energy stronghold, bridging power gaps across the Southern African Development Community (SADC) region.
Meanwhile, Shino added that Namibia’s renewed commitment to the Kudu Project not only secures its energy future but also sets a precedent for global energy innovation.
The Kudu Project Development aims to develop the Kudu Gas Field, located offshore in the northern Orange sub-basin. The field, situated within Petroleum Production Licence 003 (“PPL003”), covers an area of 4,567 square kilometres, with a water depth of approximately 170 metres.
The gas produced from the Kudu Gas field will be transported in a 170-kilometre pipeline to a power station that will be built and situated at Uab Vlei, approximately 25 kilometres north of Oranjemund, in southern Namibia.
The gas will then be used to generate electricity from the Kudu 800MW CCGT Power Station to be constructed and run by NamPower (Pty) Ltd and its partners.
BW Energy entered into a farm-in agreement for a 56% operating interest in early 2017, with NAMCOR holding a 44% joint venture interest. In 2021, BW Energy signed a farm-up agreement with NAMCOR, increasing the company’s interest to 95% in the licence. Their revised integrated development plan aims to supply competitive power to the growing African market, holding significant upside potential.
