Eco Atlantic Complets Its 60% Farm-Down of 3 Offshore Namibian Licences to British Petroleum

Eco (Atlantic) Oil & Gas Ltd has completed the farm-down of a 60% participating interest in its three offshore Namibian petroleum licences to BP Namibia Energy Ltd, following the signing of final ministerial deeds on Monday.

The company said in an announcement published on its website on Tuesday that it received signed transfer, assignment and renewal deeds from the Minister of Industries, Mines and Energy Monday, completing the final step of the transaction.

A farm-down is when an oil exploration company sells or transfers part of its ownership interest in an oil exploration licence to another company.

The transaction covered Petroleum Exploration Licences (PELs) 97, 99 and 100 in the Walvis Basin, offshore Namibia, with British Petroleum (BP), through its wholly owned subsidiary BP Namibia Energy Ltd, taking over operatorship of all three licences.

These followed the transaction that was initially announced in April 2026, with Eco Atlantic receiving final ministerial approval from the Namibian authorities on 1 October under Section 11 of the Petroleum (Exploration and Production) Act for the transfer of interests in the three licences, according to reports.

The licences cover Block 2012A under PEL97, Blocks 2111B and 2211A under PEL99, and Blocks 2211B and 2311A under PEL100, all located offshore Namibia.

Following completion, BP held a 60% participating interest in each licence, while Eco retained 25%, according to the company,with National Petroleum Corporation of Namibia (NAMCOR) retained 10%, while local partners holding the remaining 5% in each licence.

Eco Atlantic said it expects to receive a once-off cash consideration of US$2.7 million from BP next week Monday, while BP will carry 100% of its retained 25% participating interest, together with its proportionate share of NAMCOR's and local partners' interests, during the current exploration phase.

The approved 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, with preparations underway for the programme's commencement in the coming weeks.

Commenting to the completion, Eco Atlantic's President and Chief Executive Officer (CEO), Gil Holzman, in the report described the completion as a landmark achievement for the company and Namibia's oil and gas sector.

"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 ('IOC') operator in its prospective offshore acreage," he said.

Holzman said the transaction demonstrated the company's strategy of reducing financial exposure through partnerships with international oil companies while retaining interests in prospective exploration areas.

"This transaction once again evidences our ability to execute our strategy of derisking our portfolio through partnerships with IOCs and experienced operators while continuing to hold material exposure to prospective acreage with substantially reduced financial commitments," he said.

Eco said it intended to use the transaction proceeds to support its ongoing exploration and appraisal activities across its Atlantic Margin portfolio, as well as general working capital purposes.