Namibia has given Eco (Atlantic) Oil & Gas the final approval to farm down its interests in three offshore licenses to BP Namibia Energy, clearing the way for the deal to close. BP will become the operator and fund Eco’s remaining interest during the current exploration phase.
The approval marks a major step forward for offshore exploration in Namibia’s Walvis Basin. Eco will reduce its exposure and funding commitments while BP takes the lead on exploration. The move also allows Eco to focus on expanding its portfolio in Guyana and South Africa.
Through its subsidiaries, Azinam Group, Eco Oil & Gas Namibia, and Eco Oil & Gas Services, Eco will transfer a combined 60% participating interest across PEL97, PEL99, and PEL100. BP will take operatorship of the Cooper, Guy, and Tamar licenses. The ministerial approval represents the final government consent required under Namibian law.
With the approval secured, Eco and BP are completing the remaining steps to close the transaction, which is expected shortly. The partners will then launch an exploration program while Eco significantly reduces its funding obligations. Eco will receive US$2.7 million in cash and retain a 25% interest in each license. The company plans to use the proceeds to support exploration and appraisal activities across its Atlantic Margin portfolio and for working capital.
BP will fully carry Eco’s 25% retained interest, along with its share of NAMCOR’s 10% interest and the local partners’ 5% interest during the current exploration phase. The approved program includes seismic reprocessing on PEL97 and the acquisition of at least 3,000 square kilometers of new 3D seismic data across PEL99 and PEL100.
If the partners move into the second renewal period in 2028 and commit to drilling an exploration well, Eco can either transfer an additional 10% interest to BP in exchange for a full carry on its remaining 15% stake, subject to a US$21 million cap per well on each license, or retain its 25% interest and fund its share of drilling costs.
source: https://www.offshore-energy.biz/
African Energy Council