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NAMIBIA –CURRENT DEVELOPMENTS

Roger SwartNAMCOR (Pty) Ltd

Oil Africa 2006Cape Town

23rd March 2006

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Presentation outlineKudu gas to power projectOther current exploration players- Hunt Oil- BHP Billiton- Neptune Petroleum- Greendale Universal Holdings- First African Oil Corporation/Circle Oil- INA Industrija Nafte- Block 1711Conclusion

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• Water depth 170m

• Reservoir depth 4400m

• On Orange Banks

• Reservoir – interbedded with volcanic rocks

Kudu licence area

Kudu Production Licence 001

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Kudu gas field history

Discovery 1974 (Chevron/Regent/Soekor)Exploration License award: 6 May 1993 (Shell, EA, <Texaco>)Petroleum Field declared: 21 July 1997Production License awarded on 31 August 2005Tullow Oil (90%), Namcor (10%)2 wells planned for 2007

Kudu

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Kudu – current concept

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Construction challenges

Weather swell offshore winds

Remote locationDynamic surf zoneCoastal fog

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Swell

Typical conditions February-March 2006, the so-called “weather window”

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Winds

Effect - Onshore terminal and power plantSeasonal – winterBut…

SW is the dominant wind direction

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Remote location

Kudu

Windhoek.

170 km to Oranjemund 800 km to Windhoek 800 km to Cape Town

Diamond coast

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Dynamic surf zone

Problem for pipe laying

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Coastal fog

Satellite image of coastal fog

Corrosion an issueHigh sulphur content

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Licensed acreage at end of 2005

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Hunt Oil Company

Large sized US IndependentConverted reconnaissance licence to exploration licence on 23 August 20054 year licence in Lüderitz basinNamcor holds a 10% carried interest

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BHP Billiton

Awarded 2 exploration licences on 23 August 2005South of Kudu licence (Southern block) and block west of Kudu licence (Northern block)Parts of northern block overlapping with Kudu Production AreaFirst stratigraphic delineation of acreage in NamibiaProvides win-win solution3D seismic campaign underway

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Neptune Petroleum

2 year exploration licence awarded 23 August 2005Currently interpreting seismic

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Greendale Universal Holdings

Received 2 exploration licences on 27 October 2005 (17 166 km²)Blocks 1811 A&B, 2714BSeismic interpretation phase

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Circle OilFirst post-independence onshore licence (Owambo basin)Largest acreage ever (138 963 km²)Full exploration license on 17 November 2005Namcor cosignatory with 10% stakeWell commitment

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INA Industrija Nafte

Croatian NOCExploration license on 23 November 2005Second onshore licence to be awarded

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Block 1711

Block relinquished by VancoAcreage with highest potential so farReceived several applications for licenceFinalising negotiationsLocal BEE participation includedNamcor to take up stake

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Conclusion

Kudu development imminentNamibia set to join petroleum producers clubOther exciting developments