Eco (Atlantic) Oil & Gas is steadily reshaping its Namibian offshore portfolio, with final ministerial approval for the transfer of its 85% participating interest in Petroleum Exploration Licence (PEL) 98 marking the latest step in the company’s strategy to concentrate on its BP-backed exploration assets in the Walvis Basin.
The approval from the Ministry of Industries, Mines and Energy clears the final regulatory hurdle required under Section 11 of Namibia’s Petroleum (Exploration and Production) Act for Eco to transfer its entire 85% interest in PEL 98 to wholly Namibian-owned Lamda Energy (Pty) Ltd. With the remaining transaction documentation now being finalised, completion of the farm-out is expected shortly.
Although the announcement centres on a single licence, it represents a much broader strategic shift that has fundamentally changed Eco Atlantic’s position in Namibia. Within a few months, the company has moved from holding interests in four offshore petroleum licences to concentrating on three highly prospective exploration blocks, with one of the world’s largest energy companies, BP, leading exploration activities.
Earlier this year, Eco announced a landmark farm-out agreement under which BP Namibia Energy Limited will acquire a 60% participating interest and operatorship of PELs 97, 99 and 100, subject to ministerial approval. Once that transaction is completed, Eco will retain a 25% interest in the three licences, allowing it to remain exposed to exploration upside while substantially reducing the capital commitments associated with deep-water frontier exploration.
The disposal of PEL 98, therefore, completes another phase of Eco’s portfolio rationalisation. Rather than spreading its financial and technical resources across multiple exploration licences, the company has chosen to exit one asset completely while retaining a significant position in acreage it believes offers greater long-term value under BP’s operatorship.
The strategy reflects a broader trend emerging across Namibia’s offshore petroleum industry. As exploration advances from frontier drilling towards appraisal and potential development, junior explorers that secured large licence positions during the early years of exploration are increasingly introducing major international operators capable of funding the expensive seismic programmes and deep-water drilling campaigns required to unlock the basin’s potential.
Partnering with BP represents an opportunity to retain meaningful exposure to one of the world’s most prospective offshore regions while transferring operatorship and a significant share of future exploration expenditure to a company with the financial and technical capacity to accelerate exploration.
The company confirmed that the Section 11 application covering the BP transaction across PELs 97, 99 and 100 has already been submitted to the Ministry of Industries, Mines and Energy and now represents the next major regulatory milestone. Approval of that transaction will formally establish BP as operator of the three licences and complete Eco’s transformation from operator to strategic exploration partner in Namibia.
Chief Executive Officer Gil Holzman said ministerial approval for the PEL 98 transaction was a significant milestone, advancing the farm-out towards completion and demonstrating continued regulatory progress in Namibia’s offshore sector.
He also welcomed what he described as growing momentum in the country’s upstream petroleum industry, saying continued progress on ministerial approvals was strengthening confidence among companies investing in Namibia and supporting the advancement of exploration and commercial transactions across the country’s offshore acreage.
Beyond Namibia, Eco Atlantic is simultaneously progressing several strategic transactions across its international portfolio. The company confirmed that the Section 11 application relating to its transaction with BP in Namibia has now been submitted, while a similar application covering its Block 1 farm-out to Navitas Petroleum in South Africa was lodged with the Petroleum Agency South Africa on 26 June. In Guyana, negotiations continue on a new Production Sharing Agreement for the Orinduik Block. At the same time, regulatory approvals remain under way for transactions in the Falkland Islands following the company’s recent acquisitions.
