Eco streamlining Namibian portfolio for deepwater focus

September 16, 2025, by Dragana Nikše

Eco (Atlantic) Oil & Gas, an AIM-listed and Canada-headquartered oil and gas company focused on the Atlantic Margin, has undertaken several activities aimed at optimizing its operations offshore Namibia.

Eco Atlantic's Namibia acreage following approval of PEL 98 farmout; Source: Eco Atlantic

In addition to signing deeds of amendments for its work programs in Namibia, the Canada-based player secured license extensions across all four of its petroleum exploration licenses (PELs). Furthermore, the company farmed out its entire working interest in a block offshore Namibia to a local player, Lamda Energy.

The company believes these strategic developments will allow it to focus on unlocking the hydrocarbon potential of what it says is highly prospective and deeper water acreage in Namibia while continuing to support local ownership and operational leadership.

“These developments represent an important step in our tactical vision and an optimisation of our Namibian portfolio and work programmes,” said Gil Holzman, President and CEO of Eco Atlantic.

“I want to sincerely thank our dedicated team and our key stakeholders within the Ministry of Industries, Mines and Energy, who have worked tirelessly over the past 12 months to ensure a mutually beneficial plan and a smooth transition for the Farm-Out of PEL 98 (Sharon Block).“

License extensions

A new negotiated schedule was confirmed for PELs 97, 98, 99, and 100. These extended schedules provide Eco and its partners additional time to pursue enhanced exploration activities and find new farm-in partners for the licenses.

The Ministry of Industries, Mines, and Energy of the Republic of Namibia formally approved a 12-month extension to the first renewal exploration period for all four licenses, allowing it to run until September 2026.

More specifically, a one-year extension was granted to the initial exploration period for PELs 97, 98, 99, and 100, now continuing to September 2026 (initial extension year). This is paired with an optional first renewal period of two years following the initial extension year, or the first renewal period.

Once the first renewal period is completed, there is an option to extend it by an additional year, which is the first renewal extension. If this option is exercised, its completion can be followed by an optional two-year second renewal period.

Furthermore, the updated work programs that have been approved include 3D seismic reprocessing on PEL 97, and a 3D seismic survey and processing of around 1,000 square kilometers each on PELs 99 and 100.

Additionally, thanks to an environmental clearance certificate issued by the Ministry of Environment, Forestry, and Tourism, Eco can undertake the planned seismic activities across its licenses in the deepwater Walvis Basin offshore Namibia.

PEL 98 farm-out

Eco approved the farm-out of its entire 85% participating interest in the shallower PEL 98, Block 2213, or the Sharon block, to Lamda Energy, which will become a qualified offshore operator once the required government approval is received.

Under the terms of the deal, Lamda will make an up-front payment to Eco for administrative costs, and assume all obligations and liabilities associated with the license. The new operator will also be obligated to make certain payments to Eco, up to a maximum of $2 million, if it decides to farm out its interests to a third party in the future.

Additionally, an Eco representative will stay on as a board member at Lamda Energy to ensure a smooth handover. This farm-out is said to align with the company’s commitment to advancing local participation and partnerships in Namibia’s oil and gas sector.

This comes on top of Eco’s recent acquisition, which allowed it to expand its Namibian footprint in the prolific Orange Basin. The company’s affiliate, Azinam South Africa, recently got the approval for the acquisition of a 75% working interest and operatorship of Block 1 from Tosaco, which will retain the remaining 25% interest.