Namibia's Undersea Treasure Trove

By Nevin, Tom | African Business, November 1996 | Go to article overview

Namibia's Undersea Treasure Trove


Nevin, Tom, African Business


Beneath the boisterous south Atlantic, some 170km off Namibia's southern coast, a treasure trove of unbelievable wealth, nearly 5km under the sea, lies waiting to be exploited. Should the latest round of explorations confirm earlier expectations, Kudu 4 gasfield could contain three trillion cubic feet of virtually pure (96%) methane gas. The hunt is on for customers such as power stations. Kudu 4 could well be Namibia's golden-egg laying goose.

An exploration consortium, Shell Exploration and Production Namibia made up of Shell (75%), Texaco (15%) and South Africa's Engen (10%) - is funding and conducting the operation. Estimated exploration and development costs are in the region of N$3.2bn.

The problem, or perhaps the opportunity, is to find a customer who requires enough gas to make the development of the field a viable proposition. Right now, the gas consumption infrastructure in Southern Africa is insufficient to support Kudu. Thus, to kick-start the development, a major baseload end-user may be required.

"Unlike oil, which is easily transportable and has ready domestic markets, a successful development of gas generally depends on a market with long-term sales contracts," explains Mr Ger Kegge, Shell Exploration's Managing Director. The N$3.2bn price tag requires the sale of volumes of gas that exceed Namibia's anticipated energy requirements. To this end, the project must be considered in a Southern African context.

Kudu 4 could be a massive energy source looking for a market - such as power generation or primary industry with consumers who could immediately consume large volumes of gas.

"South Africa's power provider, Eskom, could be the answer," states Mr Kegge. "Much of that country's power is generated by coal-fired plant, and gas can be considered a far more attractive proposition than coal. It is more efficient and more environmental friendly: It saves water and needs little land."

However, South Africa is coal-rich and coal is deeply entrenched as a power generating fuel. Many power stations have been built on coalfields producing low quality coal that is good for nothing else.

But the question comes down to one thing: Who will build South Africa's next power station? …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Namibia's Undersea Treasure Trove
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.