Eco (Atlantic) Oil & Gas has received final ministerial approval to transfer a 60% participating interest in three exploration licenses offshore Namibia to BP, clearing the final governmental consent required for the transaction.
The approval covers PEL97, PEL99 and PEL100 in the Walvis Basin, comprising the Cooper, Guy and Tamar licenses. BP Namibia Energy will also assume operatorship of the three licenses.
The parties are completing the remaining closing requirements, with completion expected shortly. Eco will receive a one-time cash payment of $2.7 million upon completion and retain a 25% participating interest in each license.
BP will carry 100% of Eco’s retained 25% interest during the current exploration phase, as well as Eco’s proportionate share of the 10% interest held by NAMCOR and the 5% held by local partners.
The government-approved exploration 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 enter the second renewal period in 2028 and commit to drilling an exploration well, Eco can transfer another 10% interest in exchange for BP fully carrying its remaining 15% interest, subject to a $21 million net cap for each well on each of the three licenses.
If Eco exercises the option across all three licenses, BP’s maximum aggregate carry would be $63 million. Eco can alternatively retain its 25% interest and fund its share of drilling costs.
“Securing final regulatory approval for the farm down of our Namibian portfolio to BP is a significant milestone for Eco and brings us towards completing this landmark transaction.
“With final regulatory approval now secured, we will complete the remaining closing formalities as swiftly as possible and look forward to moving full steam ahead with BP, NAMCOR and our local partners into the next phase of exploration across these highly prospective Walvis Basin licenses,” said Gil Holzman, Eco Atlantic’s President and CEO.
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