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BP PLC on Monday said it is buying 60% interest in offshore Namibian licences from Eco Atlantic Oil & Gas Ltd. The London-based fuel major will take over as operator of three blocks in Namibia’s Walvis Basin known as PEL97, PEL99 and PEL100, or the Cooper, Guy and Tamar licences. Eco Atlantic noted that the farmout agreement had been signed on Friday, with a $2.7 million one-time cash consideration due upon the deal’s completion. This will require approval from the Namibian Ministry of Industries, Mines & Energy and Upstream Petroleum Unit, as well as the Toronto Stock Exchange, where Eco Atlantic has its primary listing. BP shares rose 1.3% to 581.70 pence on Monday morning in London, tracking in line with Brent, which was quoted at $102.07 a barrel early Monday, higher than $96.14 late Friday. Eco Atlantic jumped 12% to 61.60p on London’s AIM, having closed 2.0% higher at C$1.02 in Toronto on Friday. According to Eco’s latest estimates, the three licences have a combined book value of $11.0 million, with Eco having spent $1.4 million on the blocks in the year ended March 31. Under the deal, Azinam Group Ltd, Eco Oil & Gas Namibia Pty Ltd and Eco Oil & Gas Services Pty Ltd will farm out 60% interest to BP Namibia Energy Ltd, a wholly owned subsidiary of BP Exploration Operating Co Ltd. State-owned National Petroleum Corp of Namibia will remain a partner to BP, as will Eco Atlantic, retaining 25% interest. Proposed exploration of the licences in question includes seismic reprocessing of the Cooper licence, and 3D surveys of at least 3,000 square kilometres on the Guy and Tamar licences. If BP and partners opt for a second licence renewal period in 2028, and commit to well-drilling, Eco can exercise a put option, transferring an additional 10% stake to BP in exchange for a full carry on Eco’s remaining 15%. The maximum aggregate carry consideration payable by BP for each put option, if Eco exercises its options on all three licences, is $63 million with a cap of $21 million per option. Alternatively, Eco can retain 25% paying interest and 25% of drilling costs. It can also farm out interest to other partners. Eco will use the farm-out proceeds ‘to support the company’s ongoing exploration and appraisal activities across its Atlantic Margin portfolio and for general working capital purposes’, it said. Gil Holzman, Eco’s chief executive, added: ‘This transaction is a clear demonstration of our strategy partnering with supermajors and [international oil companies], to derisk our portfolio while retaining material exposure to significant upside potential with very limited financial requirements from Eco.’ Gordon Birrell, BP’s executive vice president of production & operations commented: ‘Namibia is a region attracting growing industry interest and has a number of exciting frontier basins. This agreement marks BP’s entry into the country as an operator, strengthens BP’s exploration portfolio and provides long-term growth potential.’ Since the start of 2025, Azule Energy, BP’s equally owned joint venture with Roman peer Eni Spa, has reported four Namibian hydrocarbon discoveries. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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