Eco Atlantic reels in BP for Namibia push

BP has entered Namibia's offshore exploration sector after signing a farm-out agreement with Eco Atlantic Oil & Gas, acquiring a 60% participating interest and operatorship across three petroleum exploration licences in the Walvis Basin.

The agreement, signed on 10 April 2026, covers the Cooper Licence, petroleum exploration licence (PEL) 97, the Guy Licence (PEL99), and the Tamar Licence (PEL100), spanning several blocks offshore Namibia.

Under the terms of the deal, BP will assume operatorship of all three blocks while Eco retains a 25% participating interest across each licence. NAMCOR, Namibia's national oil company, retains a 10% interest in each block, with local partners holding the remaining 5%.

Eco Atlantic will receive a one-off cash consideration of US$2.7 million upon completion of the transaction. Crucially, BP will carry 100% of Eco's 25% retained interest, as well as Eco's proportionate share of

NAMCOR's and the local partners' carry, through the current exploration phase.

The proposed exploration work programme includes seismic reprocessing on PEL97 and a 3D seismic survey of at least 3,000 square kilometres (km²) across PEL99 and PEL100, subject to government approval.

The deal carries significant additional upside for Eco.

Should BP and its partners elect to enter the second renewal period of the licence term in 2028 and commit to drilling an exploration well, Eco will have the option to exercise a put option, transferring an additional 10% interest to BP in exchange for a full carry on its remaining 15% stake, capped at US$21 million per well per licence. If all three put options are exercised, the maximum aggregate carry consideration payable by BP would reach US$63 million.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, said the transaction marked a landmark moment for the company and for Namibia.

"This transaction is a clear demonstration of our strategy of partnering with supermajors and international oil companies to de-risk our portfolio while retaining material exposure to significant upside potential with very limited financial requirements from Eco," he said.

"Eco entered Namibia in 2011 with a firm belief in the Walvis Basin's subsurface potential, and we are proud to attract an operator of BP's calibre to further explore this prospective basin."

The farm-out reduces Eco Atlantic's funding exposure significantly while keeping the company meaningfully exposed to what could prove to be a highly prospective basin. Namibia's offshore sector has attracted growing international interest in recent years, following major discoveries by TotalEnergies at the Venus prospect and Shell in the Orange Basin, both pointing to the country's substantial hydrocarbon potential.

Eco Atlantic said it would use the proceeds of the transaction to support ongoing exploration and appraisal activities across its broader Atlantic Margin portfolio and for general working capital purposes.