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ONGC Videsh Ltd, the overseas investment arm of ONGC, will acquire stake in offshore Namibia block.
A company statement said that OVL through ONGC Videsh Vankorneft Pte Ltd (OVVL) has signed definitive binding agreements with Tullow Namibia Ltd (Tullow), a wholly-owned subsidiary of Tullow Oil plc, for acquiring 15 per cent participating interest in Namibia Petroleum Exploration License 0030 for Block 2012A and related agreements (licence) from Tullow’s existing participating interest of 25 per cent in the licence.
Eco Oil and Gas Namibia (Pty) Ltd with 32.5 per cent participating interest, Azimuth Namibia Ltd with 32.5 per cent participating interest and National Petroleum Corporation of Namibia (Pty) Ltd with 10 per cent participating interest are other partners in the licence, the statement added.
An OVL official told BusinessLine that no payouts have been made by OVL for the transaction.
The valuation of the stake will be subject to the quantum of assets discovered, he added.
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 license and Tullow shall 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.
The acquisition is subject to the satisfaction of customary conditions precedents including Namibian regulatory and joint venture partners approvals as well as grant of a 12-month extension to the First Renewal Exploration Period by the Namibian regulatory authority.
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