BP Secures Operatorship Of Three Offshore Exploration Blocks In Namibia

BP has secured operatorship of three offshore petroleum exploration licences in Namibia after receiving final government approval for a deal with Eco (Atlantic) Oil & Gas, the Namibian newspaper reported.

Eco Atlantic said this week it had completed the transfer of a 60% stake in the three offshore exploration licences to BP Namibia Energy, a subsidiary of British energy major BP.

The transaction, which received final ministerial approval from Namibia’s Ministry of Industries, Mines and Energy, gives BP control of exploration activities in the three licences, known as PEL97, PEL99 and PEL100, in the Walvis Basin.

Under the agreement, Eco Atlantic retains a 25% stake in each licence, while the National Petroleum Corporation of Namibia (Namcor) holds 10%.

Local partners own the remaining 5% in each block.

The next phase of exploration will involve a three-dimensional seismic survey covering at least 3,000 square kilometres across PEL99 and PEL100.

Seismic surveys use sound waves to create images of underground rock formations, helping energy companies identify geological structures that could contain oil and gas.

Eco Atlantic said preparations for the survey were already underway, with work expected to begin in the coming weeks.

Eco Atlantic Chief Executive Gil Holzman described the completion of the transaction as a major milestone for the company and Namibia’s oil and gas industry.

“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 operator in its prospective offshore acreage,” Holzman said.

He said the partnership would allow Eco Atlantic to maintain its interest in the licences while reducing its financial commitments.

“We are particularly grateful to the government of Namibia, the Ministry of Industries, Mines and Energy and the Upstream Petroleum Unit for their professionalism, efficiency and collaborative approach in progressing the necessary approvals,” he said.

The approved exploration programme also includes further processing of existing seismic data from PEL97, the company said.

Under the agreement, BP will fund Eco Atlantic’s share of exploration costs during the current licence renewal period. It will also cover the costs attributable to Namcor’s 10% interest and the local partners’ combined 5% stake.

The arrangement allows Eco Atlantic to retain its 25% ownership in the licences without financing its share of the current exploration programme.

Eco Atlantic said the deal would reduce its financial exposure while allowing it to retain an interest in any future discoveries.

The company is also expected to receive a one-off payment of US$2.7 million this week, equivalent to approximately N$44.7 million.

The agreement includes further options when the licences reach their next renewal stage in 2028.