Tullow Oil has signed a farm-in agreement with Eco (Atlantic) Oil & Gas Limited to acquire its 40 per cent interest in Cooper Block (2012A), situated in the Walvis Basin offshore Namibia
The 3D seismic programme is expected to start in Q4 2014.
Tullow Oil said that it will fully carry the cost to drill an exploration well on the block over 1,000 sq km.
Under the deal, Eco (Atlantic) Oil & Gas Limited will initially transfer a 25 per cent working interest in the Cooper Block to Tullow Oil in return of the latter’s share of costs to execute and process the seismic programme, and the reimbursement of 25 per cent of the former’s past costs totalling US$1mn.
Following the first transfer, if Tullow Oil participates in the drilling of an exploration well on the Cooper Block, it will be transferred an additional 15 per cent working interest in the block in return for Tullow Oil’s share of costs to drill an exploration well on the block, capped at US$53mn, and the reimbursement of an additional 15 per cent of the past costs by Eco (Atlantic) Oil & Gas Limited.
Eco (Atlantic) Oil & Gas Limited will remain operator until the second transfer, at which time, Tullow Oil will be appointed as operator of the Cooper Block.
Eco (Atlantic) Oil & Gas Limited currently holds a 70 per cent working interest in the Cooper Block, AziNam Limited holds a 20 per cent working interest and NAMCOR holds a 10 per cent working interest.
Following the first transfer, Eco (Atlantic) Oil & Gas Limited will hold a 45 per cent working interest in the Cooper Block, Tullow will hold a 25 per cent working interest, and AziNam and NAMCOR will retain their respective working interests.
