Eco Atlantic Oil & Gas has sealed an agreement that marks a new stage in its operating strategy: an alliance with Navitas Petroleum that contemplates the possibility of the latter acquiring majority stakes in two key blocks: Orinduik, located offshore Guyana, and CBK Block 1, off the coast of South Africa.
Strategic investment in offshore blocks
As part of the framework agreement, Navitas will pay a total of US$8.5 million to access participation options in both concessions. In the case of the
For CBK Block 1 in South Africa, the option will allow Navitas to take up to a 47.5% interest with an initial investment of US$4 million, also accessing the operation of the block. This block is part of the Orange Basin, a region of growing exploration interest in the African continent.
Access to future assets and regional synergies
The agreement also grants Navitas a preferential option to acquire a 25% interest in other assets operated by Eco in Namibia and South Africa, excluding the aforementioned blocks. This option extends for a period of up to 10 years, allowing for a long-term projection of the cooperation between the two companies.
Eco Atlantic will retain a minority interest in the blocks and will benefit from future production revenues. In turn, Navitas will provide operational capabilities, financing and technical expertise in high-impact offshore developments.
Synergy in the energy transition
Eco points out that this alliance allows it to accelerate the development of its key assets, in a context in which offshore exploration offshore exploration in emerging areas such as the Guyana-Suriname Basin and offshore Africa is gaining increased attention. The collaboration reinforces Eco’s presence in regions with growing infrastructure and significant commercial potential.
Both companies may also participate jointly in future bids or acquisitions, on a 50:50 basis, as established in the option clause on future assets.
Source: Eco Atlantic Oil & Gas
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