30 Oct 2014 18:50pm
BEIJING, 30 OCT (NAMPA) Japanese company Tullow has withdrawn its participation from the much-anticipated Kudu gas-to-power project.
Tullow and Itochu, both Japanese companies, jointly owned 46 per cent of the shareholding in the Kudu gas project as upstream partners.
Minister of Mines and Energy Isak Katali told Nampa here on Thursday Tullow has informed the government that it will withdraw from the project due to financial problems within their company.
Katali said it is anticipated that Itochu will follow suit as they owned the same share.
Tullow has indicated that they can only continue with the project up to the final investment decision, he said.
However, Katali indicated that the Namibian Government has already approached the China-Africa Development (CAD) Fund and its potential partner, CNOOC to take up the 46 per cent shareholding.
He said the two companies are eager to take up the shares in the development of the Kudu gas-to-power project.
Katali met with the management of the two companies in Beijing, China on Thursday.
During the meeting, CAD Fund president Liu Hao indicated their willingness to participate.
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.
The Kudu Power Station is expected to come on stream in 2018.
Namcor has 44 per cent equity interest in Production Licence 003, together with partners Tullow Kudu Limited (46 per cent Operator) and CIECO Namibia (10 per cent).
The Kudu gas field is located some 130 kilometres offshore the south-west coast of Namibia.
The current focus is on defining the Kudu gas field development, which could be followed by further exploration in the licence area for additional gas, and potentially oil resources.
NamPower currently holds a 100 per cent equity interest in Kudu Power Company (Proprietary) Limited (Kudu Power), a company established to design, build and own the Kudu Power Station at Uubvlei, 25 kilometres north of Oranjemund.
NamPower intends to reduce its equity in Kudu Power with the introduction of strategic partners, will be the sole buyer of electricity from Kudu Power and will enter into power export agreements for the sale of electricity that is surplus to Namibian requirements.