Offshore exploration company Eco (Atlantic) Oil & Gas has obtained the final regulatory clearance needed to complete its farm-down of a 60% stake in three Namibian exploration licences to bp.
Namibia’s Minister of Industries, Mines and Energy granted formal approval for the transfer of interests.
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The transaction concerns Block 2012A (PEL97, known as the Cooper Licence), Blocks 2111B and 2211A (PEL99, Guy Licence) and Blocks 2211B and 2311A (PEL100, Tamar Licence). These are located in the Walvis Basin.
The consent satisfies the last governmental requirement under Section 11 of Namibia’s Petroleum (Exploration and Production) Act, and the two parties are working through remaining closing deliverables ahead of an expected near-term completion.
The deal, underpinned by a farmout agreement signed in April 2026, will see BP Namibia Energy, a wholly owned subsidiary of bp, take over the operatorship of all three blocks.
Eco will receive a one-time payment of $2.7m and retain a 25% participating interest across the licences.
Under the agreed terms, bp will fund the entirety of Eco’s retained 25% stake during the current exploration phase, together with the latter’s proportionate share of the interests held by state oil company NAMCOR at 10% and local partners at 5%.
The arrangement significantly reduces Eco’s near-term funding obligations while preserving its upside exposure to future discoveries.
An exploration work programme endorsed by the Namibian Government calls for seismic reprocessing on PEL97 and the acquisition of at least 3,000km² of fresh 3D seismic data covering PEL99 and PEL100.
Eco president and CEO Gil Holzman said: “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.
“We are grateful to Her Excellency the President of the Republic of Namibia and the Namibian authorities, particularly the Ministry of Industries, Mines and Energy and the Upstream Petroleum Unit, for their efficient, professional and collaborative approach, which enabled the approval process to progress within the anticipated time frame.”
Looking further ahead, if bp and its partners opt to enter the Second Renewal Period in 2028 and commit to drilling, Eco can exercise a put option on each licence to transfer a further 10% interest to bp.
In return, bp would fully carry Eco’s remaining 15% participating interest, subject to a cap of $21m net to the latter per well on each licence, giving a maximum aggregate carry of $63m across all three blocks.
Eco said it plans to deploy the cash proceeds towards exploration and appraisal activities across its broader Atlantic Margin portfolio and general working capital purposes.
The transaction does not involve any finder’s fees and no company insiders have a financial interest in the deal.
