BP has completed the acquisition of a 60% participating interest in three offshore petroleum exploration licences in Namibia from Eco (Atlantic) Oil & Gas, following final government approval of the transaction.
Eco Atlantic announced on Tuesday that Namibia’s Minister of Industries, Mines and Energy had signed the transfer, assignment and renewal deeds on 9 November 2026, completing the regulatory process and formally transferring operatorship of the three licences to BP Namibia Energy Ltd.
The transaction covers Petroleum Exploration Licence (PEL) 97, known as the Cooper Licence, PEL 99, known as the Guy Licence, and PEL 100, known as the Tamar Licence.
The approval follows the Section 11 consent granted by the Namibian government on 1 October 2026, allowing the companies to finalise the farm-out agreement initially announced in April.
Under the transaction, BP has acquired a 60% participating interest and operatorship in all three licences, while Eco Atlantic retains a 25% interest.
The National Petroleum Corporation of Namibia (NAMCOR) maintains a 10% interest in each licence, with local partners retaining the remaining 5%.
Eco Atlantic will receive a one-off cash payment of US$2.7 million on 16 November 2026 as part of the agreement.
BP will also fund Eco Atlantic’s entire 25% participating interest, together with the proportionate exploration costs attributable to NAMCOR and the local partners, during the first renewal exploration period.
The arrangement reduces Eco Atlantic’s financial exposure while allowing it to retain an interest in potential discoveries across the three offshore licences.
Following completion of the transaction, the joint venture is preparing to launch a three-dimensional (3D) seismic acquisition programme covering at least 3,000 square kilometres across PEL 99 and PEL 100.
The programme is expected to commence in the coming weeks and forms part of the exploration work approved by the Namibian government.
Additional work includes the reprocessing of existing seismic data on PEL 97 to improve the geological understanding of potential hydrocarbon prospects.
Eco Atlantic President and Chief Executive Officer Gil Holzman said the transaction marked a significant development for the company’s Namibian exploration portfolio.
“The successful completion of the farm down of our Namibia portfolio to BP is a landmark achievement not only for Eco but also for Namibia’s oil and gas sector, which has now gained another leading International Oil Company (“IOC”) operator in its prospective offshore acreage,” Holzman said.
He said the agreement would allow Eco Atlantic to continue participating in offshore exploration while substantially reducing its financial commitments.
“This transaction once again evidences our ability to execute our strategy of derisking our portfolio through partnerships with IOCs and experienced operators while continuing to hold material exposure to prospective acreage with substantially reduced financial commitments,” he said.
Under the agreement, Eco Atlantic will have the option to reduce its participating interest further if BP and its partners decide to enter the second renewal exploration period in 2028 and commit to drilling an exploration well.
Eco may transfer an additional 10% interest in any of the three licences to BP in exchange for BP funding the company’s remaining 15% interest in the relevant exploration well, subject to a maximum carry of US$21 million per licence.
If Eco exercises the option across all three licences, the maximum aggregate drilling carry would amount to US$63 million.
Alternatively, the company may retain its 25% interest and fund its proportionate share of drilling costs or seek additional partners, subject to the required technical and financial qualifications.
Holzman said the company would now focus on advancing exploration activities alongside BP, NAMCOR and its local partners.
“As we enter this next phase alongside BP, NAMCOR, and our local partners we look forward to building on the strong relationships we have established in Namibia and advancing exploration across all three prospective licences, with a large-scale 3D seismic acquisition programme expected to commence in the coming weeks,” he said.
Following the transaction, BP holds 60% and operates all three licences, while Eco Atlantic holds 25% and NAMCOR 10%.
The remaining 5% interest in PEL 97 is held by Tangi Trading Enterprise CC, while Lotus Exploration (Pty) Ltd holds the corresponding interest in PEL 99 and Moonshade Investments (Pty) Ltd in PEL 100.
Eco Atlantic said it intends to use the US$2.7 million cash proceeds to support exploration and appraisal activities across its wider Atlantic Margin portfolio and for general working capital.
The transaction has received conditional acceptance from the TSX Venture Exchange and remains subject to final exchange acceptance following the submission of customary closing documentation.
