"BW Energy has refined the spud date and detailed the cost of a high-profile appraisal well it is set to drill at its 1.3 trillion cubic foot Kudu gas field offshore Namibia. Late last year, the Oslo-listed operated said the Kharas probe would start drilling in the second half of 2025, with the aim of adding to Kudu’s resources in order to enhance its attractiveness as a commercial project. Kudu's current development plan — which could be sanctioned this year — calls for subsea wells tied back to a semi-submersible floating production system that would strip out condensate, leaving gas to be piped to a floating power barge moored in Elizabeth Bay, south of Luderitz port. After discussions with rig contractors, company executives now expect the Kharas appraisal well to spud in the third-quarter of 2025 at an all-in cost of less than $100 million.
Speaking in BW Energy’s fourth-quarter results call late last week, chief executive Carl Arnet said the well will be drilled in the northern part of the Kudu production licence (PL 003). “We have been out to bid for rigs and services and are currently in a selection process. It’s looking very positive that we will have access to excellent assets,” he said. “We are working with other operators in the Orange basin and looking into potential sharing of available resources.” Arnet added that a number of interesting targets have been identified beyond Kharas as a result of recently completing processing of newly acquired 3D seismic data.
Chief financial officer Brice Morlot said the cost of the Kharas well is expected to be about $95 million. He said long-lead items for the well, which will be drilled in 640 metres of water, have been secured, with the drilling campaign expected to last about 80 days, excluding rig mobilisation and demobilisation. Morlot said the objective is to “map the true potential of Kudu,” adding that details on a second well will depend on the results of the Kharas probe. He stressed that “for the time being” there is no plan to farm down BW Energy’s 95% stake in the Kudu field."
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