ONGC arm buys 15% stake in Namibia offshore block from Tullow

ONGC Videsh Ltd (OVL), the overseas investment arm of the country's top explorer Oil and Natural Gas Corp has acquired a 15 per cent stake in Namibia's offshore Block 2012A from Tullow Oil.

ONGC Videsh executed the deal through its wholly owned indirect subsidiary ONGC Videsh Vankorneft Pte Ltd (OVVL). OVL did not reveal the cost of acquisition.

OVVL on Monday signed definitive binding agreements with Tullow Namibia Limited, a wholly owned subsidiary of Tullow Oil plc, for acquiring 15 per cent participating interest in Block 2012A of Namibia Petroleum Exploration License area 0030.

Tullow has a 25 per cent participating interest in the Petroleum Exploration Licence 0030, in offshore Namibia.

Eco Oil and Gas Namibia (Pty) Ltd with 32.5 per cent participating interest, Azimuth Namibia Limited with 32.5 per cent participating interest and National Petroleum Corporation of Namibia (Pty) Ltd with 10 per cent participating interest are the other partners in the licence.

The licence is currently under First Renewal Exploration Period and the joint venture partners are carrying out data evaluation for identifying a drill prospect.

Eco is currently the operator of the licence and Tullow proposes to acquire another 15 per cent participating Interest and assume the role of operator from Eco under the licence, in case Tullow elects to proceed into the Second Renewal Exploration Period.

OVL said the acquisition is subject to satisfaction of customary conditions precedents, including Namibian regulatory and joint venture partners' approvals as well as grant of a twelve month extension to the First Renewal Exploration Period by the Namibian regulatory authority.

Coming soon after the completion of the first acquisition of 30 per cent participating interest in PEL-0037 from Tullow on 3 October 2017, the completion of the present transaction would strengthen ONGC Videsh partnership with Tullow and its other partners, including NAMCOR, the national oil company of Namibia and would mark consolidation of ONGC Videsh interest in Namibian offshore.

OVL said the acquisition is consistent with its strategic objective of adding high quality exploration and production assets to its existing E&P portfolio.