ONGC Videsh and Tullow Namibia Limited (Tullow), a wholly owned subsidiary of Tullow Oil plc, have signed definitive binding agreements for the acquisition of 30% participating interest in Namibia Petroleum Exploration License 0037 for blocks 2112A, 2012B and 2113B, as well as and related agreements, out of Tullow’s existing participating interest of 65% in the license.
With 30% and 5% participating interest respectively, Pancontinental Namibia Limited and Paragon Oil and Gas are other partners in the license.
Tullow is the operator of the License and will remain in this position subsequent to the acquisition by ONGC Videsh, which is subject to satisfaction of customary conditions precedents, including approvals of Namibian regulatory authorities and joint venture partners.
The completion of the transaction would mark ONGC Videsh’s entry in Namibian offshore. Moreover, the deal is consistent with the company’s strategic objective of adding high impact exploration and production assets to its existing exploration and production portfolio.