Tullow Oil Brings New Partner to Kudu Project
Tullow Oil has reached agreement to sell Itochu Corporation (Itochu) a 20% interest in its Republic of Namibia Production Licence No. 001, which contains the Kudu gas field.
To earn the 20% interest, Itochu will pay 40% of the cost of two appraisal wells to investigate the significant upside potential of the Kudu field. In addition, under the terms of the transaction, Itochu will make further financial payments depending on the ultimate volume of reserves developed and will provide Tullow with beneficial development financing for the project. The transaction is subject to partner pre-emption rights and Namibian Government approvals.
The objective of the two-well appraisal program is to establish commercially productive flow rates from the extensive Kudu East reservoir originally tested by the Kudu-5 well. If this can be achieved, then a multi- tcf upside potential will be demonstrated therefore expanding the development options available for the Kudu field.
The Pride South Seas semisub is scheduled to arrive on location at the end of April and each well is expected to take approximately 80 days to drill.
Commenting today, Aidan Heavey, Chief Executive of Tullow said:
"We are delighted to welcome Itochu, a strong international partner, to work with Tullow in the appraisal and development of the Kudu gas field. This is a very exciting time in the appraisal program which has the potential to transform the Kudu asset by significantly increasing the reserve base and open up a number of additional development options. The successful development of this asset has the potential to make a very important contribution to Namibia's long-term power needs and Tullow is committed to sanctioning this project at the earliest opportunity".
Tullow is a leading independent oil & gas, exploration and production group, quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 250 Index. The Group has interests in over 100 exploration and production licenses across over 20 countries and focuses on three principal core areas: Europe, Africa and South Asia.
Tullow's European interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames-Hewett areas and operates over 60% of its production.
In Africa, Tullow has exploration and production in Gabon, Côte d'Ivoire, Congo (Brazzaville), Mauritania and Equatorial Guinea and a large gas field development and appraisal program in Namibia. Tullow also has exploration programs in Mauritania, Senegal, Cameroon, Uganda, Congo (DRC), Tanzania, Madagascar, Angola and Ghana.
In South Asia, Tullow has exploration and production in Pakistan and Bangladesh and high impact exploration activities in India.
Following the recently completed acquisition of Hardman Resources Limited, Tullow also has high impact exploration interests in French Guiana, Suriname and the Falkland Islands.
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