BP sets stage for Walvis Basin drill campaign

BP and Eco Atlantic plan to launch a large-scale 3D seismic survey in Namibia's Walvis Basin before the end of 2026, as they move into the next phase of an exploration strategy that could ultimately lead to drilling up to 2 offshore wells.

The survey will cover Petroleum Exploration Licences 97, 99 and 100, where BP is expected to assume operatorship, subject to completion of its April 2026 agreement to acquire a 60% participating interest in the three offshore blocks from Eco Atlantic.

Environmental approval for the deepwater survey has already been secured, and planning is underway for what is expected to become the first major work programme on the acreage once the BP farm-down is completed.

The seismic data will be used to mature exploration targets and determine whether the licences contain prospects capable of supporting an offshore drilling campaign.

Eco Atlantic has described the exploration roadmap as moving from farm-down to seismic acquisition, prospect maturation, drilling and, ultimately, potential discovery.

Under the transaction, BP will pay Eco Atlantic US$2.7 million, about N$49 million, upon completion, and will fund Eco Atlantic's retained 25% interest through the current exploration phase.

Eco Atlantic estimates the carry could ultimately be worth approximately US$80 million, about N$1.45 billion, significantly reducing the financial burden of advancing the licences and leaving the company fully funded for the exploration work programme, including the large seismic survey.

Coverage

The three licences cover approximately 22,894 square kilometres in the Walvis Basin. PEL 97, known as Cooper, covers about 5,788 square kilometres in Block 2012A. PEL 99, known as Guy, covers roughly 11,457 square kilometres across Blocks 2111B and 2211A, while PEL 100, known as Tamar, covers a further 5,649 square kilometres across Blocks 2211B and 2311A.

The survey could determine whether the Walvis Basin emerges as Namibia's next offshore exploration hotspot alongside the Orange Basin.

While Namibia's southern offshore regions have dominated global headlines following major discoveries by TotalEnergies, Shell, Galp Energia, and Rhino Resources, the Walvis Basin remains comparatively underexplored despite evidence of a working petroleum system.

Eco Atlantic believes the acreage contains mature source rocks and proven reservoir systems supported by regional discoveries and geological similarities with productive hydrocarbon provinces on the opposite side of the Atlantic Ocean.

The company has described the three licences as offering a balance between shallow-slope and deepwater exploration opportunities, providing exposure to multiple play types across a large offshore position.

The BP transaction represents a major endorsement of that geological potential.

Meaningful exposure

Few companies possess the technical capability and financial strength required to evaluate large offshore basins, and BP's entry gives the project access to one of the industry's largest exploration teams while allowing Eco Atlantic to retain meaningful exposure to any future discovery.

In addition to the BP transaction, Eco Atlantic previously completed a separate farm-out arrangement involving PEL 98. That deal reduced licence fees and work programme commitments and is valued by the company at approximately US$2 million. The closing of the PEL 98 farm-out remains in progress.

Taken together, the transactions have strengthened Eco Atlantic's position in Namibia while limiting shareholder dilution and reducing future exploration costs.

Next milestone

The next major milestone will be completion of the BP farm-down, expected in the third quarter of 2026.

Once completed, attention will turn to the acquisition and interpretation of the new seismic data.

Three-dimensional seismic surveys are among the most important stages in offshore exploration because they provide detailed images of subsurface geological structures. The data allows geoscientists to identify potential hydrocarbon traps, evaluate reservoir quality and determine whether prospects warrant the substantial investment required for offshore drilling.

Eco Atlantic has indicated that survey results could support the drilling of one or two exploration wells.

Should the seismic data confirm the presence of significant drillable structures, BP could move towards an exploration drilling campaign, potentially opening a new chapter in the development of Namibia's offshore oil sector.

Success in the Walvis Basin would further reinforce Namibia's reputation as one of the world's most attractive offshore exploration destinations and could stimulate additional investment across the country's petroleum sector.

With environmental approvals secured, funding in place and one of the world's largest energy companies preparing to take operatorship, the planned 2026 seismic campaign is shaping up as one of the most important offshore exploration programmes currently scheduled in Namibia.