| Mon 5 Jul 2004, 17:28 | | Tullow Oil Concludes Joint Development Agreement f |
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Tullow Oil Concludes Joint Development Agreement for Kudu Gas Field, Namibia
Energy Africa Limited
Registration number : 1995/007140/06
(Incorporated in the Republic of South Africa)
JSE code: ENR ISIN code: ZAE000010427
Tullow Oil Concludes Joint Development Agreement for Kudu Gas Field, Namibia
Tullow Oil is pleased to announce that its subsidiary company, Energy Africa,
which operates the Kudu gas field with a 90% interest, has concluded a Joint
Development Agreement with NAMCOR, the National Petroleum Corporation of
Namibia, its 10% partner in the field, and NamPower, the Namibian power utility
company, in relation to the planned development of the Kudu field as part of a
gas to power project (`the Project`). This agreement represents the successful
culmination of the initial project phase, which was primarily aimed at
demonstrating the commercial viability of the Project.
The Project involves the offshore development of the Kudu gas field by Energy
Africa and NAMCOR, and the piping of gas to shore for treatment and delivery to
an 800MW power station to be developed and commercially operated by NamPower in
the vicinity of Oranjemund. The produced electricity will be sold to NamPower,
for resale into the Namibian market and to Eskom for the South African market.
NamPower and Eskom have signed an agreement to enter into negotiations to
conclude power purchase agreements and additional agreements under which Eskom
will assist and support NamPower in the operation and maintenance of the power
station and provide other technical support during the development and
commercial operation of the power station.
The primary objectives of the next phase of the Kudu gas field development,
which has already commenced, are to confirm the viability of the Project, to
complete detailed engineering and design work and to procure appropriate
financing for the Project, leading to a final investment decision by the end of
2005.
Rhidwaan Gasant, Managing Director of Energy Africa said: `This Agreement
represents a significant milestone in commercialising the proven gas reserves in
Kudu and in proving up additional reserves, potentially unlocking significant
value for the Tullow group. We have been able to achieve this largely through
the excellent co-operative working relationship established with NamPower,
NAMCOR and Eskom`.
Aidan Heavey, Chief Executive of Tullow Oil said: `We are encouraged by the
progress achieved in relation to the planned Kudu gas field development, which
we are confident will be an important contributor to our objective of achieving
significant organic growth for the enlarged Tullow group.`
5 July 2004
For Further Information Contact:
Tullow Oil plc (+44 20 7333 6800)
Aidan Heavey
Tom Hickey
Energy Africa (+27 21 400 7600)
Rhidwaan Gasant
Citigate Dewe Rogerson (+44 207 638 9571)
Martin Jackson
Murray Consultants (+353 1 498 0300)
Joe Murray
College Hill (+27 11 447 3030)
Johannes van Niekerk
Notes for Editors
`Tullow` where referred to in this release means Tullow Oil plc and/or its
subsidiaries, as appropriate.
Tullow is one of the leading independent international oil and gas exploration
and production companies in Europe. Tullow is quoted on the London and Irish
stock exchanges (symbol TLW) and is a member of the FTSE 250 Index.
Production and Development Assets
Tullow has interests in over ninety exploration and production licences spread
over three core areas: UK North Sea, West Africa and South Asia. Tullow
recently completed the acquisition of Energy Africa, which takes the number of
countries in which Tullow is active to sixteen.
In the North Sea, Tullow`s principal interests are in the CMS and the
Thames/Hewett group of licences and the Bacton onshore gas-processing terminal,
which it operates.
In Africa, Tullow has production in Gabon, Cote d`Ivoire, Congo (Brazzaville)
and Equatorial Guinea. Tullow also has exploration programmes in Morocco,
Mauritania, Senegal, Cameroon, Uganda and Egypt.
In South Asia, Tullow has production and exploration interests in Pakistan and
is exploring in India, in addition to Bangladesh.
For further information see www.tullowoil.com
