Chariot Oil & Gas has sold 25% of its stake in block 2714A in Namibia to UK-based oil firm BP for an undisclosed sum.

Block 2714A is located in the Orange Basin off the Namibia coast and covers a 5,481km² area.

Under the terms of the deal, BP will bear Chariot’s cost of drilling the first exploration well, as well as costs incurred in the past.

Funds from the deal will allow the company to further its exploration and appraisal work.

The agreement is subject to approval by Namibia’s Ministry of Mines and Energy.

Following the transaction, Petrobras, which holds a 50% stake, will be the block’s lead operator, reports Dow Jones.