Eco (Atlantic) Oil & Gas has secured final ministerial approval to transfer a 60% participating interest in three offshore Namibian petroleum exploration licences to BP Namibia Energy Ltd, clearing a key regulatory condition for the transaction.
The company said the approval was granted on 1 October 2026 by Namibia’s Minister of Industries, Mines and Energy under Section 11 of the Petroleum (Exploration and Production) Act.
The transaction covers PEL97, PEL99 and PEL100, comprising the Cooper, Guy and Tamar licences in Namibia’s Walvis Basin.
Under the previously announced farm-out agreement, BP will acquire a 60% participating interest and assume operatorship of the three licences, while Eco will retain a 25% interest. NAMCOR and local partners will retain their respective interests.
Eco President and Chief Executive Officer Gil Holzman said completion of the transaction is expected shortly, subject to the remaining closing requirements.
Upon completion, Eco will receive a one-off cash payment of US$2.7 million, approximately N$45 million.
BP will also carry 100% of Eco’s costs associated with its retained 25% interest during the current exploration phase, as well as Eco’s proportionate share of the costs attributable to NAMCOR’s 10% and the local partners’ 5% interests.
The exploration programme includes seismic reprocessing on PEL97 and the acquisition of at least 3,000 square kilometres of new 3D seismic data across PEL99 and PEL100.
Holzman said the transaction reduces Eco’s funding exposure while allowing the company to retain a significant interest in the three licences.
“With final regulatory approval now secured, we will complete the remaining closing formalities as swiftly as possible and look forward to moving full steam ahead with BP, NAMCOR and our local partners into the next phase of exploration across these highly prospective Walvis Basin licences,” he said.
Eco plans to use the cash proceeds to fund exploration and appraisal activities across its wider Atlantic Margin portfolio and for general working capital.
The agreement also provides for a further potential farm-down if BP and its partners proceed into the second renewal period in 2028 and commit to drilling an exploration well.
Under that arrangement, Eco will have the option to transfer an additional 10% interest to BP in exchange for a full carry of its remaining 15% interest, capped at US$21 million, approximately N$350 million, per well on each licence.
The transaction would deepen BP’s position in Namibia’s offshore exploration sector while bringing a major international operator into the next exploration phase of the three Walvis Basin licences.
