India’s ONGC Videsh is set to buy a share in an exploration licence offshore Namibia.
The company on Tuesday said it had reached a binding agreement with Tullow Oil to buy 30 percent interest in Namibia Petroleum Exploration License 0037 for Blocks 2112A, 2012B and 2113B out of Tullow’s existing participating interest of 65% in the license.
Pancontinental Namibia (Pty) Limited with 30% Participating interest and Paragon Oil and Gas (Pty) Limited with 5% participating interest are other partners in the License. Tullow is the operator of the License and will continue to remain operator after acquisition by ONGC Videsh.
According to ONGC Videsh, the acquisition is subject to satisfaction of customary conditions precedents including approvals of Namibian regulatory authorities and joint venture partners.
“The completion of the present transaction would mark ONGC Videsh entry in Namibian offshore and is consistent with its strategic objective of adding high impact exploration and production assets to its existing E&P portfolio,” ONGC Videsh said.