GREY:ENGFF - Post by User
Comment by
shipvanon Jul 22, 2008 10:46am
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Post# 15316522
Tight hole status
Tight hole statusFollow up from yesterday.
Press reports from Namibia over the past few days would suggest that pressure is continuing to mount on finding a solution to the lack
of power supply in the region. Tullow’s off-shore gas field (Kudu) and the proposed gas power plant provides the obvious solution, but
negotiations between the parties involved (Tullow, NamPower and Eskom) have been bogged down over a disagreement on price and
currency. The power situation in Namibia is now described as ‘critical’, with the local power company, NamPower, not ruling out load
shedding and requesting power reductions from the mining industry. Such events are likely to concentrate the minds of those involved
in the negotiation process and thus eventually lead to a solution, which, in our view, should be to the benefit of Tullow. Kudu (Phase I),
accounts for 11.8p (1.3%) of our total Tullow NAV.
My opinion the hole is dry but they wish to keep the lid on it because it only strengthens Tullow's hand for negotiations.
This is just my opinion. best of luck to all