Tullow Drills Namibian Gas Fields

UK-based oil and gas company Tullow Oil will invest R750m ($104m) in exploration drilling for two more gas wells alongside the Kudu gas fields in Namibia.

Kudo, which has emerged as one of the biggest gas condensate finds in the world, has reserves estimated at three trillion cubic feet.

Tullow says a possible deal with South African state oil firm PetroSa would help to construct a 700km pipeline to transport the gas and storage facilities.

The company has sunk a rig in the first well with results due in August. Drilling on the second well is expected to commence immediately after.