In a significant move for asset optimization, Eco (Atlantic) Oil & Gas has successfully renewed its rights over four Petroleum Exploration Licenses (PELs) in Namibia.
Additionally, the company has agreed to divest its 85% stake in PEL 98 under the Sharon Block to Lamda Energy, a Namibian-owned entity.
Energy in Africa confirmed on Tuesday that the Namibian Ministry of Industries, Mines and Energy has formally approved a 12-month extension of exploration rights for Eco Atlantic.
The renewed licenses include:
– PEL 97
– PEL 98
– PEL 99
– PEL 100
These licenses are set to expire in September 2026, with options for renewal extending up to five additional years. The renewal process includes:
– An initial optional renewal for two years
– An optional extension of one year
– A second renewal period for an additional two years
As part of its strategic portfolio reshuffle, Eco Atlantic has agreed to farm out its entire 85% participating interest in PEL 98 (under Block 2213) to Lamda, though subject to government approval.
Gil Holzman, President and CEO of Eco Atlantic, said, “These developments represent an important step in our tactical vision and an optimisation of our Namibian portfolio and work programs.”
He also expressed gratitude to the dedicated team and stakeholders for their efforts in ensuring a smooth transition for the farm-out of PEL 98.
Namibia: A hot spot for oil exploration
In recent times, Namibia has emerged as a focal point for oil exploration, particularly in the Orange Basin, which gained attention in 2022 among major players like Shell and TotalEnergies.
However, Shell has since halted operations after facing disappointing results, writing down $400 million due to challenges in proving commercial viability.
In contrast, companies like Galp, TotalEnergies, and Eco Atlantic continue to thrive towards developing their finds, supported by a government eager to establish Namibia as a significant oil producer.
TotalEnergies is currently in discussions with Namibian authorities to extend an exploration license in the popular Venus block under PEL 56.
Holzman noted, “Their support has been instrumental in the alignment of our efforts on our deeper water PELs 97, 99, and 100, which have been the recent focus of industry partners.”
Recently, Eco Atlantic received an Environmental Clearance Certificate to conduct seismic surveys across its Namibian portfolio.
The updated work programs include plans to reprocess the preliminary 3D seismic finding on PEL 97 and conduct up to 1,000 km² of new 3D seismic on both PEL 99 and PEL 100.
