BP BP-N on Monday agreed to buy an operating interest in three offshore exploration blocks in Namibia from Canada-based Eco Atlantic Oil & Gas EOG-X as it ramps up its upstream portfolio.
BP will pay Eco Atlantic US$2.7-million in cash for the 60-per-cent interest in the three petroleum exploration licenses, the Canadian firm said.
The oil major has turned its focus back to oil and gas after an ill-fated foray into renewables, pledging to dispose US$20-billion worth of assets and cut its debt to between US$14-billion to US$18-billion by end-2027.
BP has been under pressure to publish more information to prove its strategy of shifting spending from low-carbon to oil and gas projects will boost shareholder value.
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The deal marks BP’s entry as an operator in the southern African country, a global oil and gas exploration hot spot which hopes to produce its first oil by 2030.
The blocks are located in the Walvis Basin, a vast area north of the prolific Orange Basin where all of Namibia’s offshore discoveries have been made by oil majors including Shell and TotalEnergies.
Eco Atlantic will remain a partner in the blocks along with Namibia’s national oil company NAMCOR, BP said.