BW Energy plans to spud the Kharas-1 appraisal well in the Orange Basin in the second half of September 2025, targeting the northwest section of the Kudu gas license (PPL 003) offshore Namibia.
The well marks a critical step in the long-troubled Kudu gas-to-power project, which has faced decades of delays and changing ownership.
Initially discovered in 1974 by a Chevron-led consortium drilling the Kudu 9A-1 well, the project entered Namibia’s offshore licensing arena early, but progress stalled.
Subsequent wells drilled in 1987–1988 encountered gas-bearing sandstone reservoirs, with lower formations flowing to surface at rates of more than 38 million standard cubic feet per day.
However, the project struggled to attract a buyer and development funding.
Over the years, the Kudu field changed hands multiple times: from Chevron and Soekor to Energy Africa, and later to Tullow Oil following its acquisition of Energy Africa in 2004.
Gazprom and Itochu were involved at various stages, but ultimately withdrew from the project in the mid-2010s.
BW Energy, which now holds a 95% operated interest in PPL 003 (with Namcor retaining 5%), is pursuing a revised, lower-capital development model.
The company has contracted the Deepsea Mira semi-submersible rig to drill the Kharas well and is exploring the use of a semi-submersible drilling unit as a floating production facility to streamline costs.
Though earlier plans envisioned an 800 MW gas-fired power plant to supply Namibia and export electricity to South Africa, the project has since been scaled back, and a final investment decision has been delayed multiple times.
A NamPower-commissioned power plant proposal at Uubvlei was initially targeted for commissioning around 2009, but has not yet proceeded.
Namibia continues to face structural challenges in commercialising Kudu, including cost escalation, infrastructure needs such as pipelines and power transmission, and export contracts.
The gas-to-power model may need to be scaled to align with current field estimates and export aspirations.
Still, the upcoming appraisal drilling is a crucial milestone.
Success at Kharas-1 could unlock more than 1.3 trillion cubic feet of gas that have sat untapped for decades, enabling a rewrite of Namibia’s energy future and potentially delivering domestic power security by 2030.
