BW Energy is progressing a revised development plan for the Kudu gas field offshore Namibia. The new development plan for the gas to power project will use a repurposed semisubmersible drilling rig as a Floating Production Unit.

The Company has signed an agreement to acquire the semisubmersible drilling rig “Leo”, from Aquadrill LLC for a total consideration of USD 14 million. Repurposing will enable an optimisation of the project timeline and significantly reduce capital investments compared to previous development concepts.

“The revised development concept offers tangible financial, schedule and environmental benefits. The re-use of existing facilities also supports a substantial reduction in field development related greenhouse gas emissions compared to a new-build,” said Carl Krogh Arnet, the CEO of BW Energy. “We have consequently decided to take advantage of the availability this high-quality semi at an attractive price. The replacement of imported power with domestic power produced with natural gas will reduce Namibia`s carbon footprint and ensure power stability for the future.”

The revised integrated development plan aims to supply competitive power to a growing African market with significant upside potential. A development of the Kudu field is an attractive opportunity for BW Energy to engage in the electricity market and potentially fully or partially assume a position as an Independent Power Producer (IPP) through strategic partnering.

“We consider the electrification of the African economies as a significant long-term growth opportunity for BW Energy and a potential avenue for us to develop a new strategic position closer to the end customers of energy,” said Carl Krogh Arnet.

The timing of the final project sanctioning is subject to realising a project financing solution for the Kudu gas to power project.