Kudu GAs!

[Michael Alexander]

From the Namibian , dated december 2007....

"NamPower puts Kudu gas on backburner
CHRISTOF MALETSKY

MORE than two years after it was announced that the long-awaited N$5 billion Kudu gas power project at Oranjemund would be up and running by 2010, the project has gone nowhere.

In fact, it now seems that it has taken a backseat following revelations by NamPower last week that it was investing millions in other power projects.

NamPower Managing Director Paulinus Shilamba said as much on Wednesday when he briefed the media on the projects lined up to help Namibia overcome the power crisis it faces.

"The Kudu power project is a marginal and not a commercially viable stand-alone project, as it is characterised by a high US dollar-denominated gas price - meaning that the foreign exchange and hedging cost will translate into high electricity tariffs," he said.

Gas supplier company Tullow Oil insists that NamPower must buy the gas in US dollars whereas the Namibian power utility wants to buy it with local currency since it sells its commodity in Namibia dollars.

"That will translate into very high electricity tariffs.

We want South Africa and Namibia to come in to reduce the cost," Shilamba said.

Other dominant areas of negotiations include the price at which this gas could be sold.

Shilamba called on the governments of Namibia and South Africa to provide them with "explicit strategic support" if the project's goals are to be realised.

NamPower has already started looking at alternative power sources, including a smaller plant at Oranjemund and a gas pipeline to the Western Cape in South Africa.

"Currently the project team is in the process of finalising its investigations and preparation of detailed documents on government support required to make the project feasible," Shilamba said.

Southern Africa faces a steady decline in a power surplus as demand fast exceeds the available generation capacity.

This situation has already reached a critical level, with Eskom in South Africa stating that it can no longer guarantee Namibia of power all the time."
   

   



   

   

[Michael Alexander]

Just some old info on the project that could have boosted Omund!

"The Kudu gas field is a gas field in Namibia. Located off the South West coast of Namibia approximately 170 km north-west from the city of Oranjemund. Discovered in 1974, the licence has been held by a number of companies including Shell, Chevron Texaco and Energy Africa. In 2004 Tullow Oil acquired Energy Africa for $570 million dollars and with it a 90% interest in the Licence. Tullow Oil has indicated though they would be looking for a partner in the project to acquire 20% of the project to take their holdings down to 70%. The remaining 10% is held by Namcor.

The field is estimated to contain 1.3 trillion cubic feet (37×10^9 m3) of proven natural gas reserves however more recent exploration and analysis suggests that reserves could reach 3 trillion cubic feet (85×10^9 m3) with potential up to 9 trillion cubic feet (250×10^9 m3). These figures though are dependent on further work that is yet to be carried out by Tullow Oil on different parts of the field with other geological settings.

Suggested development of the field has been for a subsea tie back which would potentially make it one of the world's longest. The tie back would connect it to an 800-megawatt power plant that is located in Oranjemund. The field would be crucial in meeting Namibia's growing energy demand.

On Tuesday, 18 September 2007, shares of Tullow Oil declined by more than 3.0% after the group announced that it had to abandon the Kudu-8 exploration well offshore Namibia and that a second well planned nearby won't be drilled."

[Alfred Boehme]

I heard on the namibian radio news Kudu gas project hold up is due to the selling of the off shore gas who? what? American Dollars? ect

[Michael Alexander]

There was a debate at one stage, that Eskom did'nt want to buy...and that the royalty charged on the gas by the Nam Gov was too high for the liking  of the people wanting to pump the gas....

[Michael Alexander]

Here's an old article from 2007, funny how the more that things change..the more they.....