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Operator BW Energy has signed an agreement with National Petroleum Corporation of Namibia (Namcor), raising its stake in the Kudu licence to 95% from 56%. Having failed to attract a farm-in partner, the Norwegian company wrote down the full value of the project in Q1 2020, saying the move reflected lower pricing and a delay to the expected development timing. BW Energy said the new arrangement would enable gas sales agreements and increased the likelihood of securing financing for the upstream.

National utility NamPower signed a N317m ($20.8m) turnkey construction contract in December with Hopsol Africa Ltd and Tulive Private Equity Ltd for the 20MW Omburu solar PV plant. Speaking at the signing, NamPower managing director Simson Haulofu said the plant would begin operating by November 2021 and would generate 64GWh/yr. He added that the plant is expected to have 37% local content.

EU concern over drilling plan The European Commission has expressed concern about the potential impact of oil exploration on the Kavango-Zambezi Transfrontier Conservation Area, where Reconnaissance Energy Africa (ReconAfrica) plans to drill three wells starting in late December.

Investors, contractors and financiers have been reassessing southern Africa’s potential to emerge as a natural gas producer, supply hub and importer of molecules and electrons for gas-to-power (GTP) schemes. Mozambique’s emergence as an LNG exporter gives it potential to develop new gas-based industry and infrastructure. Developments in southern Mozambique further suggest it could drive a wider regional industry, with more gas exported by pipeline.

Nigeria’s Lekoil has announced a strategic alliance agreement with National Petroleum Corporation of Namibia’s exploration and production subsidiary. Lekoil said Namcor E&P was seeking to invest in the acquisition of interests in oil producing assets as a means of securing long-term sustainability. The agreement aims to bring together the two parties’ technical capabilities for the joint evaluation and acquisition of low-risk quick-to-production oil and gas assets across Africa, Lekoil said.

Shining Energy Ltd, Knight Piesold Consulting and Jains Solar are contesting the award of an engineering, procurement and construction contract for the 20MW Omburu solar PV plant, The Namibian newspaper reported. The contract was awarded by the Central Procurement Board of Namibia (CPBN) on behalf of Nampower to Hopsol Africa Ltd and Tulive Private Equity Ltd.

Reconnaissance Energy Africa says it hopes to start drilling the first well of a planned three-well programme in the onshore Kavango Basin in December. ReconAfrica holds PEL 73 in north-east Namibia, bordering Angola and the Bwabwata and Khaudum national parks.

As explorers cut back on Africa spending, Kosmos Energy has agreed with Royal Dutch Shell to sell its stakes in exploration blocks in São Tomé & Príncipe, Namibia, South Africa and Suriname for about $100m, plus future contingent payments of up to $100m.

Electricity production increased substantially in Q1 after good rainfall allowed increased output from the 347MW Ruacana hydropower plant, according to the Bank of Namibia quarterly bulletin. Production was 81.9% higher than in Q1 2019 at 778.2GWh and 181% higher than in Q4 2019. The improved output at Ruacana as well as a year-on-year 5.9% drop in electricity sales meant that electricity imports fell by 31.8% compared with Q4 2019 and 19.7% year on year. The Bank of Namibia said reduced sales were mostly due to lower demand from mining and agriculture.

The Electricity Control Board (ECB) has rejected an application by NamPower to increase effective bulk tariffs for 2020-21 by 3.9%, an increase from N$1.65 ($0.11)/kWh to N$1.71/kWh. The ECB said it had especially considered the impact of the coronavirus pandemic when deciding that tariffs should not change. “In order to mitigate the impact of the tariff on consumers and the economy, especially during times when the economy is struggling, the ECB allowed an amount of N$50m from the Long Run Marginal Cost fund.

Australia’s Global Petroleum has granted National Petroleum Corporation of Namibia (Namcor) an additional 7% interest in Block 2011A (PEL 94) in the Walvis Basin, in exchange for licensing 3D data acquired in 2010. The 1,583km2 survey covers the Welwitschia Deep prospect and Marula lead and will enable precise mapping of these features.The agreement will increase Namcor’s holding in the block to 17%. Private Namibian company Aloe Investments holds 5%, while Global holds the other 78%.

Bidding closed on 28 February for an IPP to develop a 20MW solar PV project near the Khan substation in Usakos, Erongo region. NamPower is managing the tender and intends to finalise the award within two months, with a 25-year power purchase agreement (PPA) signed two months after the award. Commercial operations are expected within one year of signing the PPA.The plant will be developed on a build, own, operate basis on a site that has been prepared by NamPower.

Impact Oil & Gas Limited has secured $40m via an open offer at 20p/share. The proceeds will be used to fund Impact’s share of costs for Total’s Venus-1 well offshore Namibia later in H1, and black economic empowerment company Arostyle Investments’ share of costs for the drilling of the Luiperd-1 exploration well offshore South Africa in Q2. Impact’s funding of Arostyle, agreed in December 2018, gives it exposure to Block 11B/12B, where Total announced the Brulpadda discovery in 2019.

Independent power producer Diaz Wind Power, a subsidiary of United Africa Group (UAG), has secured the land for a 44MW wind farm at Lüderitz in Namibia’s south-western Karas region. A land lease agreement was signed with the Ministry of Environment and Tourism in late December paving the way for the construction of the project, UAG chair Martha Namundjebo-Tilahun announced on Twitter. The Namibian newspaper said the wind farm would cost an estimated N$1.5bn ($107.4m).

Total has awarded contracts to Maersk Drilling to use the 7th generation drillship Maersk Voyager for wells offshore Namibia and on Angola blocks 32 and 48. Maersk announced on 13 January that the campaign was expected to commence this month, with an estimated duration of 240 days. The total value of the firm contracts is approximately $46.3m, including a mobilisation fee. The contracts include two additional one-well options.