Eco (Atlantic) Oil & Gas has received approval from Namibia’s government for a farm-down of three petroleum exploration licenses in the offshore Walvis Basin to bp Namibia Energy.

Offshore Namibia remains one of the industry's most closely watched frontier exploration regions following a series of high-profile discoveries in recent years.

Three Eco subsidiaries (Azinam Group, Eco Oil & Gas Namibia and Eco Oil & Gas Services) will transfer a combined 60% and operatorship to bp of Block 2012A PEL97 (“Cooper license”), blocks 2111B and 2211A PEL99 ("Guy license”) and blocks 2211B and 2311A PEL100 (“Tamar license”).

Completion of the handover should follow shortly. The arrangements, Eco said, would substantially reduce its funding exposure and install a major international operator to progress exploration on the blocks.

Eco will retain a 25% interest in all three licenses and will be carried for nearly all its share of costs during the current exploration phase.

The proposed, government-endorsed exploration work program includes completing seismic reprocessing on PEL97 and acquiring at least 3,000 sq km of new 3D seismic over PEL99 and PEL100.

If bp and the partners choose to elect to enter the Second Renewal Period of the license term in 2028, and commit to an exploration well, bp could exercise an option to assume a further 10% from Eco in exchange for carrying Eco’s share of costs for wells on each of the licenses.