BW Energy is preparing to spud the Kharas-1 appraisal well in the Orange Basin in the second half of September 2025, a step aimed at unlocking the long-stalled Kudu gas-to-power project.
The well targets the northwest section of Petroleum Production Licence 003 (PPL 003), described by BW Energy as a shallow-water block in the Orange Basin, adjacent to multiple recent discoveries.
Unlike the early Kudu wells drilled in the 1970s and 1980s, which primarily confirmed the presence of gas-bearing sandstone reservoirs, Kharas-1 is structured to deliver detailed reservoir characterisation.
Drilled with the Deepsea Mira semi-submersible rig, the well is planned to reach a total depth of about 3,800 metres below the seabed.
BW Energy says it will incorporate advanced logging, coring, and pressure testing to quantify flow potential and connectivity across compartments, making it different from earlier wells that were designed mainly to prove deliverability.
According to BW Energy’s September 2025 Pareto presentation, Kudu holds an estimated 1.3 trillion cubic feet of gas in place, enough to underpin a multi-phase gas-to-power project for decades.
The company confirmed that Kharas-1 will specifically test new fault blocks mapped on 3D seismic, to prove additional pay zones and potentially increase recoverable resources.
The Kudu field was first discovered in 1974 by a Chevron-led consortium and later passed through several hands, including Soekor, Energy Africa, and Tullow Oil, before Namcor took over operatorship in the mid-2010s.
Gazprom and Itochu were once partners in an attempted development but exited after facing feasibility challenges.
BW Energy acquired a 95% operating interest in Kudu in 2017 through a farm-in agreement with Namcor, which retained a 5% carried interest.
This transaction gave BW Energy control over the long-stalled project, allowing it to reframe its development strategy around a phased, lower-capex model.
Earlier wells demonstrated both the promise and challenges of the field.
Drilling in the 1980s recorded flow rates of more than 38 million standard cubic feet per day from lower sandstone reservoirs, proving deliverability.
However, later work, including the Kudu-8 well in the 2000s, delivered weaker results of about 19 million standard cubic feet per day, underlining the uncertainty and contributing to delays in development.
BW Energy has not yet disclosed target flow rates for Kharas-1, emphasising instead that the well will provide the reservoir data needed to size a phased development.
Since acquiring its stake, BW Energy has steadily invested in seismic surveys, technical studies, and planning for appraisal drilling.
Company disclosures indicate that more than US$100 million (about N$1.8 billion) has been committed to Kudu so far, including preparation costs for the Deepsea Mira rig and related well services for Kharas-1.
This level of investment underscores BW Energy’s view that the project remains a cornerstone of its African portfolio, despite decades of delays under previous ownership.
Gas-to-power, the concept at the centre of Kudu, involves producing natural gas from offshore fields and using it to generate electricity through gas-fired power plants.
In this model, gas from Kudu would be transported via subsea pipeline to shore, processed, and fed into a combined-cycle plant where turbines convert the fuel into reliable baseload electricity.
The approach not only provides firm generation capacity for Namibia’s grid but also offers a pathway to export surplus electricity to neighbouring countries through the Southern African Power Pool, linking upstream petroleum activity directly to downstream energy security.
BW Energy has also redefined the development concept for Kudu.
Earlier plans envisioned an 800 MW gas-fired power plant, but the company now proposes a modular 200–400 MW combined-cycle plant tied to a floating production facility offshore.
This phased approach is expected to reduce upfront capital requirements, accelerate time to first power, and allow scaling in line with Namibia’s grid and regional demand.
CEO Carl K. Arnet called Kharas-1 a “project-defining well” and stressed that success could reshape Namibia’s energy security.
“If successful, it will allow us to move forward with a right-sized development concept for Namibia’s grid that is scalable for regional demand. This is a project that could transform Namibia’s energy balance,” he said at the Pareto conference.
If results are positive, BW Energy plans to move to concept selection and front-end engineering in 2026, a final investment decision by late 2026 or 2027, and first power generation by 2029–2030.
The company has confirmed that this timeline is aligned with Namibia’s Integrated Resource Plan, which seeks to replace ageing coal generation with reliable domestic capacity.
By design, Kharas-1 is a turning point for Kudu, shifting the project from decades of gas discovery without development to testing whether Namibia’s offshore gas can finally fuel a commercially viable, phased gas-to-power project that delivers electricity at competitive tariffs.
