Tullow has withdrawn from its full participation in the much-eyed Kudu gas-to-power project which is under development in Namibia. According to Namibia’s Mines and Energy Minister Isak Katali, the government has been informed by Nampa of the UK-based company’s withdrawal from the project due to financial problems.
Located 130 kilometres offshore of Namibia’s south-west coast, Kudu gas-to-power project is co-owned by government and Tullow and Itochu who both jointly owned 46% of the shares. Itochu is a Japanese company.
According to Katali, there is likelihood that Itochu will follow suit as they co-owned the same share.
However, the Namibian government through Katali has indicated that the project could continue as joint venture with private investors since they have already approached the China-Africa Development (CAD) Fund and its potential partner, CNOOC to take up a 46% shareholding.
Further exploration of additional gas, and potential oil resources could also be undertaken in the license area, although the government was focusing at defining the Kudu gas field development at the moment.
“We met the two companies and they are eager to take up the shares in the development of the Kudu gas-to-power project,” said Katali.
CAD Fund president Liu Hao has also shown their interest in participating in the large gas project.
“Give us more time, and give us more information on our questions we will forward to you as soon as possible. There is no doubt that together we can develop Kudu gas,” said Liu.
Kudu power station is expected to come online in 2018. Earlier this year, there were reports that capacity of electricity generation in Namibia is 507MW, yet the demand is 534MW and expected to go up by 800MW by 2018.