Tullow mulling options for Kudu gas

This article is extracted from International Oil Letter, Vol 25 issue 12, published 23 March 2009.

Tullow Oil (70%) is considering alternative commercial options for the Kudu gas field, including marine Compressed Natural Gas (CNG) exports to Namibia and South Africa.  Kudu is located in the Orange Sub-basin, some 130km from the Namibian coast in 170m of water.  It is estimated to contain 3.3 Tcf of proven plus probable recoverable gas in Barremian sandstones.  Tullow reports that the initial development concept for Kudu gas was based on supplying an 800 MW base load power station developed and operated by NamPower, the Namibian state-owned power company, with electricity in excess of Namibia’s requirements being absorbed by the South African market.

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However, recent developments in power generation priorities in the region and the emerging potential for supplying gas into the industrial and transport markets as a replacement for diesel, have provided alternative development options.  The fast maturing marine CNG technology offers the means for these options to be seriously considered.  While development of the Kudu main field area remains the key area of focus, Tullow is also committed to proving and commercializing the potentially significant reserves upside within the production license area.  Current exploratory appraisal efforts are now focused on locating extensions of the Kudu main field reservoir within the production license.

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