BW Offshore has bought into the Kudu oil and gas field off Namibia.
Its BW Kudu subsidiary has reached an agreement to acquire a 56% stake of the license, with National Petroleum Corporation of Namibia (NAMCOR) having the rest.
The final contract could be signed in the fourth quarter.
BW will now start work with the Namibian government, NAMCOR, utility company NamPower, large infrastructure investors and other stakeholders to finalise the Kudu Gas to Power project.
This calls for gas to be produced by an FPSO before being exported by pipeline to a new 885 MW gas to power plant onshore.
"Kudu represents another opportunity for BW Offshore to take a proactive development role in a project that will produce for 15 to 25 years," said CEO Carl Arnet.
"Falling development costs after the 2014 drop in oil prices has helped in making the project economically feasible.
"The electricity generated by the power station will reshape electricity supply in south-western Africa, providing a secure long-term supply to support the development of Namibia and potentially neighboring countries."
The Kudu field was discovered by Chevron in 1974, approximately 170 km off the coast of Namibia.
