BP will buy three offshore Namibian block as the shift towards oil and gas intensifies

BP has agreed to purchase an operating 'interest' in three offshore exploration -blocks in Namibia, from Canada-based Eco Atlantic Oil & Gas. This is part of its strategy to expand its upstream portfolio.

Eco Atlantic, a Canadian company, said that BP would pay Eco Atlantic $2.7M in cash to acquire 60% of the interest in three?petroleum exploring licences.

Oil major has shifted its focus to oil and natural gas following an ill-fated venture into renewables. It pledged to sell $20 billion in assets and reduce its debt by $14 to 18 billion dollars by the end of 2027.

BP is under pressure to provide more information about its strategy to shift spending from oil and gas to low-carbon projects to boost shareholder value.

The agreement marks BP’s entry into the country as an 'operator'. It is a hotspot for global oil and natural gas exploration, which hopes to produce oil by 2030.

The blocks are located in the Walvis Basin. This vast area is north of the 'Orange Basin', where Shell and TotalEnergies have made all of Namibia's offshore discoveries.

Eco 'Atlantic, along with Namibian national oil company NAMCOR will remain a 'partner in the blocks.

(source: Reuters)