OAO Gazprom, the world’s largest natural gas producer, and Namibia’s state-owned oil company, Namcor, plan to buy part of Tullow Oil Plc’s Kudu field off the African nation’s coast.
Gazprom and Namcor plan to set up a joint venture that will hold 54 percent in the gas field, Boris Ivanov, head of the Moscow-based company’s international exploration and production unit, said in Gazprom’s corporate magazine. Tullow will hold 31 percent and Itochu Corp. the remaining 15 percent, he said.
Kudu “reserves may increase several times over with additional exploration,” Ivanov said in the issue of Gazprom magazine e-mailed today by the company. He estimated the field holds 50 billion cubic meters of gas (1.8 trillion cubic feet).
Gazprom is in talks with Namibian and South African authorities about plans to build an 800 megawatt power plant. Some electricity will be supplied to the domestic market with the rest to be exported to Botswana, South Africa, Zambia and Angola, Ivanov said.
Tullow, the U.K. explorer with the most drilling licenses in Africa, had examined plans to sell Gazprom, Russia’s state-owned gas monopoly, part of its 70 percent interest in the Kudu gas field to advance the project, Tullow Chief Operating Officer Paul McDade said in March.