ONGC Videsh's wholly owned subsidiary ONGC Videsh Vankorneft has agreed to acquire 15% stake in the Cooper Block offshore Namibia from Tullow Namibia, for undisclosed amount.
Under the terms of the deal, Tullow Oil subsidiary Tullow Namibia will divest its 15% stake in Cooper Block, a Namibia Petroleum Exploration License 0030 for Block 2012A, and related license agreements to ONGC Videsh Vankorneft.
The acquisition is part of ONGC Videsh’s strategy to add high quality exploration and production assets to its existing exploration and production (E&P) portfolio in a bid to strengthen its position.
Upon completion of the deal, Eco Atlantic will operate the Cooper Block with 32.5% stake while other partners include the National Petroleum Corporation of Namibia (NAMCOR) with 10% stake, AziNam with 32.5% interest, Tullow Oil with 10% stake and OVVL with 15% interest.
The license is currently under First Renewal Exploration Period, while the joint venture partners are assessing data for identifying a drill prospect in the region.
Additionally, Tullow will have option to acquire another 15% interest from Eco Atlantic and become license operator if it decides to proceed into the second renewal exploration period.
Eco president and CEO Gil Holzman said: “This is ONGC Videsh’s second foray into Namibia and we are delighted, on the satisfaction of the conditions precedent that they have decided to enter the Cooper Block.
“They are an excellent partner with considerable expertise and a strategy of adding high – quality exploration and production assets to its existing E&P portfolio.
“Obviously this deal bears the potential to expedite the first exploration well on Cooper Block, as all the partners are now lined up and the financial burdens are spread.”
The deal is subject to satisfaction of customary conditions including approvals from the Namibian regulatory and joint venture partners as well as grant of a 12-month extension to the First Renewal Exploration Period by the Namibian regulatory authority.