Tullow Oil and its partners in the Kudu Gas Project plan to drill at least two new wells for additional gas reserves at a cost of N$750 million, Andrew Windham, managing director Africa region, said in Windhoek this week.
Tullow has brought in a drilling rig, Pride South Sea, to the Kudu gas fields and is currently in the process of drilling an exploration well with a view to increase the reserve base, Windham said.

Windham told journalists that the first well is expected to be completed by August this year. “Hopefully we can begin with the second well immediately after that,” Windham said.
Tullow Oil and Itochu Corporation of Japan this week signed an assignment agreement for Itochu to acquire a 20 percent stake in the Kudu Gas Project.
Windham said a final agreement to develop the project will be decided early next year and the gas powered station and pipeline ready by 2011.
“We are determined to develop the project as soon as possible,” said Windham.
Hisato Okubo, Itochu's general manager natural gas project said company plans to participate in the Kudu project through institutional finance from the Japan Oil, Gas and Metals National Corporation.
Minister of mines and energy minister Erkki Nghimtina said the current estimates of developing the project stand at N$5 billion which he said will provide Namibia with a greater diversity of energy supply.
“An option still under discussion is the supply of surplus gas to South Africa via a 700km pipeline to Cape Town, providing additional income for Namibia plus a potential shared gas storage facility in the pipeline,” said Nghimtina.