By Sully Manope, in Windhoek
The British major bp has agreed to acquire a 60% interest in three offshore exploration blocks in Namibia from Eco Atlantic Oil & Gas, a Canadian minnow.
The agreement “builds on bp’s aim to strengthen its exploration portfolio, following on an exceptional exploration year, with 12 discoveries in 2025 including two in Namibia”, the company says in a release.
bp was already in Namibia in some fashion; as a 50% shareholder in Azule Energy, which holds 42.5% working interest in Petroleum Exploration Licence (PEL) 85, located in the Orange basin and operated by Rhino Resources, the South African junior.
Rhino made two discoveries in PEL 85 in 2025, a feat which bp has referenced in its statement.
Subject to Namibian government approvals, bp will be the operator of PEL97, PEL99 and PEL100 –in the Walvis Basin (which has a higher exploration risk than the Orange basin) with Eco Atlantic remaining a partner, along with Namibia’s national oil company NAMCOR, following transaction closing conditions being met.
Transactions Highlights:
A one time cash consideration of $2.7Million payable at Transaction completion.
- bp will carry 100% of Eco’s 25% Retained PI as well as Eco’s proportionate share of the NAMCOR (10%) and the Local Partners (5%) PI Carry on PEL97, PEL99 and PEL100 against the current exploration phase.
- The proposed exploration work programme (which is subject to requisite government approval), includes; completing seismic reprocessing on PEL97 and carrying out a three dimensional (3D) Seismic Survey of at least 3,000km2 on PEL99 and PEL100.
- If bp and partners elect to enter the Second Renewal Period of the license term in 2028 and commit to drilling an exploration well, Eco will have the option to either (i) exercise a Put Option to transfer an additional 10% PI to bp in exchange for a full carry on Eco’s remaining 15% PI subject to a cap of $21Million net to Eco for each well on each of the licenses (PEL97, PEL99, and PEL100); or (ii) elect to retain its 25% PI of the costs associated with such drilling of a well during the Second Renewal Period.
- The maximum aggregate Carry consideration payable by BP in respect of each Put Option (should all Put Options namely on PEL97, PEL99, and PEL100 be exercised) is US$63 million with a cap of $21Million per Put Option.
- Eco can elect to retain its 25% paying interest and/or to farm out to other potential partners (subject to such partners meeting technical and financial qualifications).
- The Transaction is subject to all customary approvals being obtained from the Government of Namibia in relation to the transfer of PI and transfer of Operatorship to bp and acceptance by the TSXV.
- The Transaction constitutes an arm’s length transaction for purposes of TSXV policies. No finder’s fees are payable in connection with the Transaction. No insiders of the Company have any interest in the Transaction.
“This agreement marks bp’s entry into the country as an operator, strengthens bp’s exploration portfolio and provides long-term growth potential”, said Gordon Birrell, bp’s executive vice president, production & operations. “Namibia is a region attracting growing industry interest and has a number of exciting frontier basins.”
Completion of the transaction is subject to customary closing conditions, including necessary approvals from the Namibian authorities and joint venture partners.
