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Wednesday, November 4, 2015
The Kudu gas-to-power project in Namibia, which has been a long time in coming, is expected to see the FID taken by mid-2016. The project will play a critical role in meeting the country’s power demand.
Since landing on the drawing board the project’s costs have risen dramatically, doubling to about $2.3 billion. The project will entail gas from the offshore Kudu field being piped to a planned 885-MW power plant on the coast.
“We are on track. The project is at a stage where it’s never been before and we should be able to make a final investment decision or financial close by June next year,” said Immanuel Mulunga, Managing Director of Namcor, on the sidelines of Africa Oil Week in Cape Town.
Namcor holds a 44% stake in the Kudu gas field.
The Namcor MD said that a preferred technical operator had been selected and negotiations were ongoing. While he did not name the company, once negotiations are positively concluded it will hold the 31% stake previously held by Tullow Oil.
Discussions were also continuing with the International Finance Corporation (IFC), over the possibility of the IFC taking an equity stake in the venture, he added.
“All the pieces of the puzzle are coming together,” Mulunga said of the project expected to produce first power at the start of 2019.
Contracts for a multitude of things have been worked up, including a gas sales agreement between the upstream partners and Kudu Power. In addition, talks with preferred contractors for the subsea pipelines and floating production system should be finalized by early-2016.
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