Implementation of the long-delayed Kudu gas-to-power project is to be accelerated under renewed energy cooperation between South Africa and Namibia.
The commitment was made at the fourth session of the South Africa-Namibia Bi-National Commission, co-chaired by President Cyril Ramaphosa and Namibian President Netumbo Nandi-Ndaitwah in Pretoria on July 17.
“The two presidents reaffirmed the strategic importance of energy cooperation and agreed to deepen collaboration in electricity generation and transmission, renewable energy and regional energy security, including by accelerating the implementation of the Kudu project,” the joint communiqué published by South Africa’s Department of International Relations and Cooperation said.
The two governments directed their ministries, departments and agencies to develop implementation plans with defined responsibilities and timeframes. According to the communiqué, progress will be monitored regularly and assessed through a mid-term review mechanism.
The Kudu development is based on an offshore gas discovery about 130 km from Namibia’s south-western coast. According to BW Energy’s 2025 annual report, the proposed development will use a floating production unit and gas export pipeline to supply an onshore power station. A substation and transmission system will connect the plant to the Namibian grid.
BW Energy holds a 95% operated interest in the Kudu licence. Namibia’s national petroleum company Namcor holds the remaining 5% and has an additional 5% back-in right when gas production begins, subject to certain conditions, according to the annual report.
BW Energy also said in the report that it is progressing the Kudu gas-to-power project in consultation with the Namibian authorities and NamPower.
However, BW Energy’s first quarter 2026 report said the Kudu appraisal programme has been placed on hold while the results of the Kharas-1A appraisal well are analysed and external input is sought on appraisal and development planning.
