BP to buy interest in three offshore Namibian blocks as shift to oil and gas sharpens

The logo of British Petroleum, BP, adorns a BP petrol station in west London. (AP Photo/Alastair Grant)

BP on Monday agreed ​to buy an operating interest in three ‌offshore exploration blocks in Namibia from Canada-based Eco Atlantic Oil & Gas as it ramps up its upstream portfolio.

BP will pay ​Eco Atlantic US$2.7 million in cash for the ​60 per cent interest in the three petroleum exploration licences, ⁠the Canadian firm said.

The oil major has turned ​its focus back to oil and gas after an ​ill-fated foray into renewables, pledging to dispose $20 billion worth of assets and cut its debt to between $14 billion-$18 billion by ​end-2027.

BP has been under pressure to publish more information ​to prove its strategy of shifting spending from low-carbon to oil ‌and ⁠gas projects will boost shareholder value.

The deal marks BP’s entry as an operator in the southern African country, a global oil and gas exploration hot spot ​which hopes ​to produce ⁠its first oil by 2030.

The blocks are located in the Walvis Basin, a ​vast area north of the prolific Orange ​Basin ⁠where all of Namibia’s offshore discoveries have been made by oil majors including Shell and TotalEnergies.

Eco Atlantic will ⁠remain ​a partner in the blocks along ​with Namibia’s national oil company NAMCOR, BP said.

Reporting by Prerna Bedi ​in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala