BW Energy has paid Namibia N$661 million (US$34.8 million) as of 31 December 31, 2023, in taxes and royalties.
The company, which owns 95% of the operated ownership interest in the Kudu gas-to-power project, said it was progressing with the revised development plan and analysing data from the 3D survey completed in May 2023.
The development plan currently consists of three subsea wells that will be tied to a repurposed semi-submersible drilling rig as a Floating Production Unit.
A gas export pipeline will transport the produced gas to a power plant, followed by an onshore substation and transmission system that will tie into the Namibian power grid.
According to BW Energy’s Fourth Quarter and Full Year Results 2023 released on Wednesday, the initial data interpretation has enhanced the depositional model and de-risked potential targets with additional prospects identified.
As a result, BW Energy said it decided to start ordering long-lead items for a future exploration program.
The Kudu gas discovery, under PEL 3, is in the northern Orange basin, approximately 130 kilometres off the southwest coast of Namibia.
The field was discovered in 1974 and is delineated by seven subsequent wells.
BW Energy has used the services of the Netherlands, Sewell & Associates, Inc. (NSAI), to estimate Kudu resources.
In the Development Pending category, NSAI has estimated gross 1C resources of 95.3 mmboe and gross 2C resources of 170.0 mmboe for three wells in the Kudu Licence as of 30 June 2022. BW Energy’s entitlement 1C resources are 90.5 mmboe, and 2C resources are 161.5 mmboe.
In the Development On Hold category, gross 1C resources are estimated at 16.9 mmboe, and gross 2C resources are estimated at 30.4 mmboe for two additional wells in the Kudu Licence as of 30 June 2022. BW Energy’s net 1C resources are 16.0 mmboe, and 2C resources are 28.9 mmboe.
