BP buys into more Namibian petroleum licences

Canadian-listed Eco (Atlantic) Oil & Gas Ltd has announced that it will sell an interest of its three Namibian petroleum exploration licences to British Petroleum (BP).

Eco Atlantic on Sunday said it has signed an agreement to farm-down 60% of its interest in petroleum exploration licences 97, 99 and 100 – all located in the Walvis Basin.

“Eco entered Namibia in 2011, with a firm belief of the Walvis basin subsurface potential, and we are proud to attract an international oil company of BP’s calibre to further explore this prospective basin.

“We look forward to continuing our excellent working relationship with BP’s dynamic and experienced team and welcome them to the Land of the Brave,” Eco Atlantic chief executive Gil Holzman said.

A farm-out agreement involves Eco Atlantic giving some of its working interest to another company, which will in return take over the exploration and operating costs of the block. Eco Atlantic will keep a 25% interest in each of the blocks.

BP, through its subsidiary BP Namibia Energy Ltd, will take over operatorship of the block. The British company will also pay N$44 million to Eco Atlantic once the transaction is completed.

“The transaction is subject to all customary approvals being obtained from the government of Namibia in relation to the transfer of participating interest and transfer of operatorship to BP and acceptance by the TSX Venture Exchange,” Eco Atlantic said.

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