Tullow subsidiary reaches Namibian agreement

Tullow Oil has announced that its subsidiary company, Energy Africa has reached an agreement to develop the Kudu gas field in Namibia.

The Tullow subsidary operates the Kudu gas field with a 90% interest, along with NAMCOR, the National Petroleum Corporation of Namibia and NamPower, the Namibian power utility company.

This agreement represents the culmination of the initial project phase, which was aimed at demonstrating the commercial viability of the project.

The Project involves the offshore development of the Kudu gas field and the piping of gas to shore to a power station to be developed and commercially operated.

The produced electricity will be sold to NamPower, for resale into the Namibian market and to Eskom for the South African market.

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."