Eco Atlantic Oil and Gas, a Canada-based oil and gas company, has received final approval from Namibian authorities to transfer 60% of its share in three offshore oil licenses to BP Namibia. This approval allows BP to enter the exploration phase of these blocks as the operator and fully cover Eco's remaining share during this exploratory phase.
Ownership Change in the Walvis Basin
The transfer of ownership in the Walvis Basin has officially begun. Eco Atlantic, recognized as the largest owner and operator in this basin, has successfully obtained final approval from the Ministry of Industries, Mines and Energy of Namibia to reduce its share to BP. These changes will enable BP to initiate extensive exploratory operations off the coast of Namibia, while Eco will focus on expanding its activities in Guyana and South Africa.
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The company will transfer 60% of its share in Block 2012A in PEL97 (Cooper License), Blocks 2111B and 2211A in PEL99 (Guy License), and Blocks 2211B and 2311A in PEL100 (Tamar License) to BP through its wholly-owned subsidiaries, including Azinam Group, Eco Oil and Gas Namibia, and Eco Oil and Gas Services. This approval is the last governmental agreement required for this transaction under Namibian law.
BP's Role in Future Explorations
Eco intends to use the cash proceeds from this transaction to support its ongoing growth through exploratory and appraisal activities in its Atlantic margin asset portfolio, as well as to cover general working expenses. Upon completion of the transfer, the company will receive a one-time cash payment of $2.7 million and will retain a 25% share in PEL97, PEL99, and PEL100.
BP will fully cover Eco's remaining 25% share, along with its proportional share from the local partner (10%) and NAMCOR (5%) in these licenses during the current exploration phase. The approved exploratory work program includes completing seismic processing in PEL97 and collecting a minimum of 3,000 square kilometers of new 3D seismic data in PEL99 and PEL100.
If the partners decide to enter the second extension period of the license in 2028 and commit to drilling an exploratory well, Eco will have the option to either execute the transfer of an additional 10% to BP in exchange for covering its remaining 15% costs or continue to retain its 25% share in drilling costs.
Gil Holtzman, President and CEO of Eco Atlantic, stated: "With the final regulatory approval, we are looking to swiftly complete the remaining final steps and are eager to collaborate with BP, NAMCOR, and our local partners in the next phase of exploration in these high-potential licenses. We will now focus on achieving other key milestones in our asset portfolio, including finalizing PSA negotiations in Guyana and completing the JHI acquisition announced earlier this year."
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