1 / 27

9 TH AFRICA OIL & GAS, TRADE & FINANCE CONFERENCE AN UPDATE ON THE KUDU GAS FIELD MAPUTO

NOT AN OFFICIAL UNCTAD RECORD. 9 TH AFRICA OIL & GAS, TRADE & FINANCE CONFERENCE AN UPDATE ON THE KUDU GAS FIELD MAPUTO 3 JUNE 2005 KEVIN STALLBOM BUSINESS UNIT MANAGER: KUDU. Kudu history – key milestones. Discovered 1974 by Chevron/Regent/Soekor Two wells drilled by Swakor 1987-88

soo
Download Presentation

9 TH AFRICA OIL & GAS, TRADE & FINANCE CONFERENCE AN UPDATE ON THE KUDU GAS FIELD MAPUTO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. NOT AN OFFICIAL UNCTAD RECORD 9TH AFRICA OIL & GAS, TRADE & FINANCE CONFERENCE AN UPDATE ON THE KUDU GAS FIELD MAPUTO 3 JUNE 2005 KEVIN STALLBOM BUSINESS UNIT MANAGER: KUDU

  2. Kudu history – key milestones • Discovered 1974 by Chevron/Regent/Soekor • Two wells drilled by Swakor 1987-88 • Licence awarded 1993 – Shell (75%), Energy Africa (25%) • Energy Africa farm-out 15% to Texaco • Petroleum field declared 1997 • Drilled four wells • Shell relinquished 2002 - ChevronTexaco (60% + operatorship), Energy Africa (40%) • ChevronTexaco relinquished Nov 2003 – Energy Africa 100% • Dec 2003 - Energy Africa 90%, Namcor 10% • Tullow Oil acquires Energy Africa May 2004

  3. Kudu Licence Area: Block 2814A • 170 km to Oranjemund • 800 km to Windhoek • 800km to Cape Town • Logistically remote area • Development overlaps Namdeb diamond mining area

  4. Kudu Project Scheme Gas SalesAgreement Domestic sales in Namibia Power Purchase Agreement Kudu Upstream JV Energy Africa Kudu Limited (90%) Namcor (10%) + Partners Nampower Kudu Power Station Company Nampower (100%) + Partners (?) Power Purchase Agreement Eskom - export sales to RSA

  5. What have we done differently…… • Initiated a “fresh” look at the broader development options • Recognized current window of opportunity in power market • Focused development on proven GIIP only : de-linked Phase 1 gas-to-power project from upside development opportunities • Established “open book” co-operative approach with downstream parties

  6. Co-operative “management” structure Kudu Steering Group Co-ordination, consultation, guidance, consensus (as per MOU/LOI) Distinct but integrated elements of same project Downstream Kudu Power Station Company Nampower Eskom + Partners (?) Relationship still to be defined Upstream Petroleum Agreement License 005, Area 2814A JOA Energy Africa Namcor + Partners Relationship defined milestones Joint Development Agreement Final Investment Decision First power

  7. Power demand growth in SADC Courtesy The Southern Africa Power Pool (SAPP) experiencing diminishing generation surplus capacity in the region caused by: • increasing power demand at a rate of three percent per year (1200MW) in the last six years • If no new generation project then in 2007, the SAPP will run out of generation surplus capacity. • There has been no significant investment in generation in the last 10-years, despite the rise in power demand.

  8. ANGOLA ZAMBIA Ruacana 240 MW Rundu Katima 3 MW Windhoek Van Eck 128 MW Atlantic Ocean Walvisbay Paratus 24 MW BOTSWANA Lüderitz REPUBLIC OF Oranjemund Kudu 800 MW SOUTH AFRICA Courtesy Power stations in Namibia

  9. Namibian transmission backbone ANGOLA Courtesy ZAMBIA Ruacana Otjikoto Otjikoto Otjikoto Gerus BOTSWANA Omburu Rössing 2 van Eck Auas Walmund Atlantic Ocean 2 Hardap 2 Kokerboom Kokerboom REPUBLIC OF SOUTH AFRICA Obib 2 Aries Aggeneis To Hydra To Koeberg

  10. Kudu Power Station: impact on region • Timing, availability of new generation in 2009 • Strengthening of regional grid • Reduction in transmission losses • Diversification of energy mix portfolio, especially to encourage the introduction of natural gas and to increase the role of renewable energy sources • Socio-economic injection • Development of Namibia’s gas resources

  11. Progress made on Kudu project – (1) Joint Development Agreement • July 2004 - Energy Africa, Namcor, Nampower & MOU with Eskom Commercial Agreements • Draft Heads of Agreement tabled and negotiation process begun Power station site & pipeline route • Pipeline route dependent on power station site • Conclusion on discussions with Namdeb expected soon

  12. Kudu Power Station Configuration Courtesy • 2 x 400 MW (nominal) Single Shaft Combine Cycle Gas and Steam Turbines • Mechanical draft evaporative cooling towers with sea water make-up

  13. Kudu Power Station Location Uubvley 25 km

  14. Pipeline route options

  15. Progress made on Kudu project - (2) FEED study – confirmation of project feasibility • Development concept selected - protects schedule and budget • FEED study contract awarded to John Wood Group, results due July 2005 • EIA approved Reprocessing 1993/96 3-D seismic survey • Contract awarded to CGG • Completion October 2005

  16. Kudu field area • WATER DEPTH : 170m • RESERVOIR DEPTH 4400mbmsl • HIGH PRESSURE – 536 bar • HIGH TEMPERATURE – 158°C • DRY/SWEET GAS – 96% CH4 • 2-3 bbls/MMscf CONDENSATE • DETERMINISTIC GIIP (Tscf) • EA GCA • PROVED 1.38 1.45 • PROBABLE 3.28 2.72 • POSSIBLE 9.92 7.12

  17. Kudu development plan • Robust and simple • Proven technology • Realistic schedule • Potential to realise the upside • Commercially viable

  18. Production profile Total well capacity Matched production profile

  19. Pre-feasibility development concept

  20. FEED development concept selection

  21. Subsea – Umbilical Option

  22. Subsea – Control Buoy

  23. Katabatic winds &aerosol sand plumes • Further technical challenge for onshore facilities • Avoided offshore by subsea development

  24. 3rd Quarter 2009: 2nd 400 MW 2nd Quarter 2009: 1st 400MW Kudu Gas-to-Power project plan 1st Quarter 2009: Gas on-shore 2007 : Downstream Construction 2006 : Upstream Construction 1st half 2006: Final Investment Decision & Financial Close 5 July 2004: Signing of JDA & MOU,Full Feasibility Phase Starts

  25. Beyond Phase1 Kudu Gas-to-Power…….. Post - Phase 1:options • Additional gas-to-power • Liquefied Natural Gas, Gas-To-Liquids, or Compressed Natural Gas • Gas export to South Africa Phase 1: 800MW gas-to-power project • 2004 – 2005 • seismic reprocessing • FEED study • GSA & PPA • Financing • Partners • 2006 – 2008 • Construction • 2009 • production

  26. Current post-Phase 1 activities • Complete planning for drilling two wells in 2006 to confirm the upside potential in greater Kudu field area. Drilling timing dependent on: • Rig and materials availability • Partners (?) • High level techno-economic evaluation of the earlier work on the three post-Phase1 options and prepare work program for further investigation • Preparing to bring in new partners - probably during second half 2005

  27. In summary:- • Phase1 - 800MW gas-to-power project progressing well with final investment decision expected early 2006 • Post - Phase1 activities for evaluation of +/- 8 Tscf GIIP upside: • Preparation to drill two wells in 2006 • Evaluating development options for three scenarios • Additional gas-to-power • LNG / GTL / CNG • Gas export to South Africa • Preparing to bring in additional partners during second half 2005

More Related