The overseas arm of Oil and Natural Gas Corporation, ONGC Videsh will acquire 15 percent stake in offshore Namibia block from Tullow Oil. OVL executed the deal through its subsidiary ONGC Videsh Vankorneft Pte Ltd. ONGC Videsh (OVL) has signed definitive binding agreements with Tullow Namibia Ltd (Tullow), a wholly owned subsidiary of Tullow Oil plc, for acquiring 15 percent participating interest in Namibia Petroleum Exploration License 0030 for Block 2012A and related agreements (License) from Tullow’s existing participating interest of 25% in the License.
Eco Oil and Gas Namibia (Pty) Ltd with 32.5 percent participating interest, Azimuth Namibia Ltd with 32.5 percent participating interest and National Petroleum Corporation of Namibia (Pty) Ltd with 10 percent participating interest are other partners in the License.
The License is currently under First Renewal Exploration Period and the joint venture partners are carrying out data evaluation for identifying a drilling prospect.
Eco is currently the operator of the License and Tullow shall acquire another 15 percent participating Interest and assume the role of an operator from Eco under the License, in case Tullow elects to proceed into the second renewal exploration period.
The acquisition is subject to conditions, including Namibian regulatory and joint venture partners approvals as well as the grant of a twelve-month extension to the First Renewal Exploration Period by the Namibian regulatory authority.
The acquisition is consistent with ONGC Videsh’s strategic objective of adding high-quality exploration and production assets to its existing E&P portfolio.