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BW Energy did not divulge all terms of the the development plan to meet off-take needs
agreement, but it reported that it had agreed to and ensure robust financial project returns.”
pay NAMCOR the sum of $4mn at the closing Arnet also declared that the Kudu project had
of the transaction. It also pledged to carry the positive implications for other projects. “Devel-
state-controlled firm’s share of development oping Kudu will provide insights [that] can be
costs until gas production begins. used to unlock similar abundant stranded gas
Additionally, the company indicated that reserves available around the world,” he said.
it intended to seek funding for gas production “Adding cost-efficient gas to the energy mix of
operations once the farm-in and carry transac- tomorrow is going to be vital to reach the world’s
tion was completed. “The new arrangement ... environmental targets.” ™
increases the likelihood of securing financing
for the upstream Kudu development,” it said.
Kudu, which contains around 1.3 trillion
cubic feet (36.81bn cubic metres) of gas, was
discovered in 1974 but has yet to be developed.
Namibian authorities hope to use future pro-
duction from the field to reduce the country’s
reliance on imported electricity from coal-
fired thermal power plants (TPPs). According
to BW Energy, the recently signed agreement
will support that goal by “[enabling] gas sales
arrangements.”
Immanuel Mulunga, the managing director
of NAMCOR, said the development of Kudu
would benefit his country. [“[This project] rep-
resents an opportunity to reduce carbon emis-
sions and strengthen energy independence for
Namibia, which currently imports a major part
of its electricity from coal-fired power plants
outside of the country,” he said. “I am confident
this development will inspire increased explo-
ration initiatives in other licence areas in the
country.”
Carl K. Arnet, the CEO of BW Energy, also
expressed optimism. “Kudu gas … has the
potential to provide a valuable contribution to
Namibia’s energy mix and local value creation by
monetising stranded gas, which is an untapped
natural resource in Namibia. The next step for
the Kudu joint venture will be to secure long-
term commercial gas sales agreements, update Kudu lies offshore in the Orange basin (Image: BW Energy)

PERFORMANCE
Algeria reports oil and gas

revenues down 30% in 2020

ALGERIA ALGERIA’S hydrocarbons income dropped by should be a priority, especially in light of the
30% year on year to $22bn in 2020 based on an decline in world crude oil prices that occurred
average oil price of $42 per barrel, Algerie Presse last year.
Service quoted Energy Minister Abdelmadjid The Algerian government has offered six
Attar as saying. petrochemical contracts to boost production
Oil and gas revenues have long played a dom- and diversify export revenues into the country
inant role in Algeria’s balance of payments. They from downstream sources. Three contracts have
now account for 96% of all foreign exchange already been signed, one of them with France’s
earnings, including $2bn in petroleum product Total in Arzew, another with a Turkish firm
exports in 2020. Officials in Algiers have said, and the third with a South Korean company at
though, that efforts to diversify the economy Skikda.

Week 04 27•January•2021 www. NEWSBASE .com P9