BP Takes Operatorship of Three Namibian Offshore Licenses

BP now holds a 60% operating interest in three offshore exploration licenses off Namibia, after Eco (Atlantic) Oil & Gas completed a farm-down that transferred operatorship and cleared the way for a new seismic program of at least 3,000 square kilometers of 3D data.

The transaction, announced by Eco following final ministerial approvals received on November 9, covers three license areas on the Atlantic Margin:

• Block 2012A under PEL97, the Cooper license
• Blocks 2111B and 2211A under PEL99, the Guy license
• Blocks 2211B and 2311A under PEL100, the Tamar license

Completion followed the Namibian government's Section 11 consent on October 1 and the subsequent ministerial signing of transfer, assignment and license renewal deeds.

Who holds what after the deal?

BP Namibia Energy carries a 60% operating interest in each license. Eco retains 25%, the state oil company NAMCOR holds 10%, and local partners keep the remaining 5%.

Eco receives a one-time cash payment of $2.7 million on November 16. BP will fully carry Eco's retained 25% interest — and the proportionate shares of NAMCOR and the local partners — through the first renewal exploration period.

That means Eco's exposure on these blocks, at this stage, is effectively zero.

What work is lined up?

The government-approved work program splits between reprocessing and new acquisition:

• Seismic reprocessing on PEL97 (Cooper)
• Acquisition of at least 3,000 sq km of new 3D seismic across PEL99 (Guy) and PEL100 (Tamar)

Eco said preparations for the acquisition campaign are underway, with shooting expected to begin in the coming weeks.

What happens if BP drills?

The deal builds in a second stage tied to drilling. If BP and its partners elect to enter the second renewal period in 2028 and commit to an exploration well, Eco can transfer a further 10% interest to BP in exchange for a full carry on its remaining 15% stake.

That carry would be capped at $21 million net to Eco for each well on each license, with a maximum aggregate of $63 million if the options are exercised across all three licenses.

Alternatively, Eco can keep its full 25% and fund its share of drilling costs itself, with the option to bring in other farm-out partners.

Eco said it intends to use the cash proceeds to support exploration and appraisal activities across its Atlantic Margin portfolio and for general working capital.

On the market side, the transaction has received conditional acceptance from the TSX Venture Exchange, with final acceptance pending the filing of customary closing documentation.

What's the watch item?

The seismic campaign is the near-term marker — watch for the acquisition start across PEL99 and PEL100 in the coming weeks, and for BP's drilling decision as the 2028 second renewal period approaches.