BP's (BP) Namibia unit agreed to acquire a 60% participating interest and operatorship across three offshore exploration licenses from the business, Eco Atlantic said Monday.
The arrangement provides a $2.7 million initial cash payment upon closing and requires BP to fully fund the remaining 25% stake held by Eco Atlantic during the current exploration period, the company said.
The BP unit will also cover the proportional exploration costs for the state-owned oil firm and local partners during this initial development phase, Eco Atlantic said.
The proposed work program involves finalizing seismic data reprocessing for one license and executing a new three-dimensional seismic survey across the other two blocks, the company added.
The company also said if the joint venture enters the second renewal period in 2028, Eco Atlantic can transfer an additional 10% interest in exchange for up to $63 million in carried drilling costs.