bp to acquire 60% stake in Eco Atlantic’s Namibia offshore exploration blocks

(WO) - Eco (Atlantic) Oil & Gas has signed an agreement to farm down a 60% participating interest in its offshore Namibia portfolio to bp, transferring operatorship across three exploration licenses in the Walvis basin. 

The transaction covers Petroleum Exploration Licenses (PEL) 97, 99 and 100. Upon completion, Eco will retain a 25% interest, while bp will assume operatorship and lead exploration activities, subject to government approvals.

Under the terms of the agreement, bp will carry Eco’s retained interest through the current exploration phase, including planned seismic work programs. The proposed activities include reprocessing existing seismic data and acquiring at least 3,000 sq km of 3D seismic across the license areas.

If the partners proceed into a subsequent license phase that includes exploration drilling, Eco will have the option to either participate in costs or further reduce its interest in exchange for a carry on future wells.

The farm-down reflects Eco’s strategy to partner with larger operators to advance exploration while reducing capital exposure. Namibia’s offshore basins, including the Walvis and Orange basins, have attracted increased industry interest following recent discoveries in the region.

bp’s entry into the licenses is expected to accelerate evaluation of the acreage, which lies within a frontier basin with growing exploration momentum.

Completion of the transaction remains subject to approvals from Namibian authorities.