For nearly half a century, Namibia’s most ambitious domestic energy project lay dormant beneath the waves—until now.
Thanks to the strategic intervention of BW Energy, the Kudu gas-to-power project, first discovered in 1974, is finally poised to deliver on its promise of transforming Namibia’s energy sector and unlocking regional export potential.
The Kudu gas field was discovered by Chevron and South Africa’s Soekor in 1974 in the Orange Basin, some 170 kilometres off the coast of Oranjemund.
The discovery well, Kudu-1, penetrated Lower Permian sandstones and confirmed the presence of significant gas-bearing reservoirs.
Early estimates placed gas in place at 1.3 trillion cubic feet (TCF), with some studies suggesting much higher upside.
Throughout the 1980s, Soekor drilled five more wells—Kudu-2 through Kudu-6—to appraise the field.
While these confirmed the presence of gas, the wells showed complex faulting and relatively low permeability, which complicated development plans.
Seismic coverage remained poor, making structural mapping and well targeting difficult.
By the early 1990s, the Namibian government had granted licences to a consortium led by Shell Exploration and Production Namibia BV, with Texaco and Energy Africa as junior partners.
In 1998, Shell drilled Kudu-7A to target potential updip pay zones, but the well was dry, dealing a blow to development hopes.
Shortly after, Shell and Chevron (via Texaco) exited the project in 2001, citing disappointing results and economic hurdles.
Energy Africa, left as the main stakeholder, was soon acquired by Tullow Oil in 2004 for US$570 million.
Tullow reprocessed vintage 2D seismic and acquired new 3D coverage to define the field better.
However, no new wells were drilled under its tenure.
Despite technical work and commercial modelling, efforts to attract partners—including Japan’s Itochu and Russia’s Gazprom—collapsed.
A long-planned appraisal well was never drilled, and by 2014, Tullow sold its stake and withdrew.
Namcor, which had maintained a minority interest since the early 2000s, remained involved but lacked the financial capacity to develop the field alone.
A revolving cast of backers
Kudu’s story in the 2000s and early 2010s was dominated by shifting allegiances.
Tullow remained the principal operator but struggled to secure partners. Japan’s Itochu Corporation entered and exited the project.
Russian giant Gazprom was courted in 2009–2010, but talks failed to produce a binding development framework. With little progress and no production infrastructure in place, Tullow eventually sought to sell its stake and exited entirely by 2014.
Throughout these decades, Namcor—the national oil company—held a steady minority interest and acted as a custodian of the field, albeit without the financial or technical means to bring it online.
By the time BW Offshore arrived in 2016, the Kudu project had seen over four decades of frustration. Industry sources estimate that at least several hundred million dollars have already been spent on exploration, seismic studies, environmental impact assessments, and development planning.
Yet no gas had flowed, and no power had been generated.
BW Energy: breathing life into a sleeping giant
BW Offshore, through its subsidiary BW Kudu, acquired a 56% interest in the field in October 2016 and began reshaping the development model.
The company leveraged its proven offshore production experience and initiated a leaner strategy, deploying a repurposed semi-submersible drilling rig as a floating production unit (FPU) connected to a 420 MW onshore gas-to-power station.
After joining the project, BW re-evaluated all available historical seismic and well data.
Then, in 2023, it completed a large-scale 3D seismic survey over the Kudu structure and nearby leads.
This was the first modern imaging of the area in decades, revealing additional upside in fault blocks adjacent to the main reservoir.
With new subsurface interpretation in hand, BW Energy is now preparing to drill an appraisal well—the first in over 25 years—scheduled for late 2025.
In July 2025, BW Energy secured the Deepsea Mira semi-submersible drillship for the planned Kharas appraisal well, marking the most advanced drilling activity since the late 1990s and representing a critical milestone toward final investment readiness.
The total cost of the Kudu project, including upstream gas development and the onshore power plant, is now estimated to be between US$880 million and US$1.1 billion.
These projections take into account the final infrastructure design, supply chain conditions, and foreign investment structures. Reuters has also reported that BW Energy intends to implement the project in phases to optimise capital expenditure.
By January 2021, BW Offshore had increased its stake to 95%, leaving Namcor with a 5% carried interest.
A dedicated seismic campaign in 2023 added critical data to guide upcoming drilling.
According to BW Energy’s 2025 update, the company plans to drill an appraisal well in late 2025 to refine resource estimates and prepare for the Final Investment Decision (FID), now expected in 2026.
Unlocking Namibia’s energy future
If successful, Kudu would provide Namibia with its first large-scale domestic gas-fired power plant, reducing dependence on imports from the Southern African Power Pool.
The project also holds potential for regional power exports, particularly to South Africa and Angola.
More broadly, Kudu’s long-awaited revival reflects a maturation of Namibia’s energy sector.
From green hydrogen ambitions in Tsau // Khaeb to oil discoveries in the Orange Basin, and now a near-term gas-to-power project, Namibia is steadily positioning itself as an energy hub in southern Africa.
For BW Energy, Kudu is more than a business venture—it’s a second chance for a project long written off by majors.
For Namibia, it’s the culmination of a 50‑year pursuit to convert natural gas into energy, jobs, and economic transformation.
