Windhoek - National power utility, Namibia Power Corp, has reached a gas sales term sheet agreement with UK-based oil and gas company, Tullow Oil Plc, which will pump gas from its Kudu fields off the southwest coast of Namibia to the utility’s planned Kudu gas-to-power plant. According to Paulinus Shilamba, Nampower managing director, a final deal with Tullow, which owns a 31 percent stake and is the operator of the Kudu gas fields, would be signed by December, paving way for construction of the US$1.3 billion, 1 050 megawatt, Kudu gas-to-power plant. “We have agreed on the basic principles of the gas sales agreement and details on the price range and other issues are still being negotiated,” Shilamba said in an interview. Nampower, as the Namibian power utility is known, owns a 51 percent stake in Kudu power project, which will use combined cycle gas turbine technology, to generate electricity from Kudu gas fields, about 200 kilometres off the southern town of Oranjemund. The national power utility would be the sole buyer of gas pumped from the Kudu fields and “has first right of refusal if there is additional gas”, Shilamba said. “We may also look at plant upgrades to raise generation capacity if Tullow discovers more gas in this licence area,” he added. The plant will consume about 100 tera joule (TJ) of gas per day and 40 peta joule (PJ) of gas per year. “Kudu will be the sole off-taker of the gas unless considerably more gas is proven to be recoverable. If the proven reserves are greater than the current estimates, Kudu Power has the first option to take more gas, but if there is more gas than Kudu Power requires, then the sales to other off-takers maybe considered,” S. Muyenga-Muyenga. Kudu project co-ordinator for stakeholder management also said in an interview. The Kudu plant, which is expected to start operating in 2018 first quarter, will generate 850 megawatts to 1050 megawatts annually. The plant, in which Zambia’s Copperbelt Energy Corp, has bought a 30 percent stake and has agreed to purchase 300 megawatts, would be operational for up to 30 years, depending on ‘availability of fuel’. “The plant capacity will depend on the technology used by the contractor but we expect it to be in the range of 850 to 1 050 megawatts,” Shilamba said. “For this class of combined cycle power station, unit sizes have increased slightly over the last few years and are now around 425 megawatts to 525 megawatts. As these units are fixed, the equipment available today to generate around 800 megawatts actually falls in the range 850-1 050 megawatts,” Muyenga-Muyenga said. The total project cost has gone up to US$1.3 billion from initially envisaged costs of US$1.2 billion, Muyenga-Muyenga added. “Expectations on the level of investment required have not changed significantly, with the current estimated being around US$1.
ex centrica boss
se company Itochu and Tullow Oil, an independent oil and gas company, have withdrawn from participation in Namibia's much-anticipated Kudu gas-to-power project, says Minister of Mines and Energy Isak Katali. Tullow and Itochu jointly owned 46 per cent of the shareholding in the Kudu gas project as upstream partners. Katali told Nampa here Thursday that Tullow, founded in Ireland and listed on the London Stock Exchange, had informed the government that it would withdraw from the project because of financial problems within their company. Katali said it was anticipated that Itochu would follow suit as they owned the same share. "Tullow has indicated that they can only continue with the project up to the final investment decision," he said. However, Katali indicated that the Namibian government had already approached the China-Africa Development (CAD) Fund and its potential partner, China National Offshore Oil Corporation (CNOOC), to take up the 46 per cent shareholding. He said the two companies are eager to take up the shares in the development of the Kudu gas-to-power project. Katali met with the management of the two companies in Beijing, China on Thursday. During the meeting, CAD Fund president Liu Hao indicated their willingness to participate. "Give us more time, and give us more information to our questions we will forward to you as soon as possible. There is no doubt that together we can develop Kudu gas," said Liu. The Kudu Power Station is expected to come on stream in 2018. The National Petroleum Corporation of Namibia (Namcor) has 44 per cent equity interest in Production Licence 003, together with partners Tullow Kudu Limited (46 per cent Operator) and CIECO Namibia (10 per cent). The Kudu gas field is located some 130 kilometres offshore the south-west coast of Namibia. The current focus is on defining the Kudu gas field development, which could be followed by further exploration in the licence area for additional gas, and potentially oil resources.
kudu gas field
Eric, 49, joins from the Exploration and Production Division of Centrica, where he was Business Manager for International Assets. He has over 23 years' experience in the oil and gas sector spanning technical, commercial and business development roles at Centrica, Burlington Resources and ConocoPhilips and brings an expertise in project development gained in North Africa. well who is near to kudu gas field and who is near to is its trp . and tullow is getting out of the deal with government talk are in prpgress
http://epetitions.direct.gov.uk/petitions/64712 as to reporting of buys and sells
Hard to see...
...the reason for the SP increase, other than just jittering around the 0.75 to 0.80 mark. The current spread is 13.33% so the MM's are making a nice margin, however only 39 trades today. Yesterday's appointment has added another 10 million shares to the 3.79 billion issued although with inbuilt delays up to 3 years the sentiment is still there with BoD throwing them around like confetti. Of course, I agree there will be an increase in SP pre-spud and timing will be critical to either sell with a profit or gamble on a strike. Like Nam' it's a gamble with 'best guess' odds. Let's hope the coin-flip is in our favour this time.
No, that herd is still looking for the 'glowing in the dark' deposit in Nam' (see what I did there...) This is a brand-new shiny herd of wannabees.... :-) DYOR, GLA, R2D2
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