SOUTH AFRICA/NAMIBIA: Eco Atlantic Strengthens Southern Africa Portfolio Through Strategic Partnership with Navitas Petroleum
Eco (Atlantic) Oil & Gas Ltd. has announced a major strategic development that reinforces its exploration ambitions in South Africa and Namibia, following the signing of a long-term partnership agreement with Navitas Petroleum. While the wider partnership covers several geographies, the implications for Eco’s southern African assets—Block 1 CBK offshore South Africa and its Namibian PEL portfolio—stand out as particularly significant.
Major Boost for Block 1 CBK, South Africa
One of the centrepieces of the agreement is the Block 1 CBK Option, granting Navitas an exclusive six-month window to farm into the highly prospective Orange Basin acreage. Should Navitas exercise the option, it will:
- Acquire up to a 47.5% working interest and operatorship of Block 1 CBK
- Make a US$4 million payment to Eco Atlantic
- Carry Eco’s share of the exploration programme up to US$7.5 million net, including potential drilling
Block 1 CBK spans a large tract of the Orange Basin—one of the world’s most active frontier hydrocarbon regions, boasting recent multi-billion-barrel discoveries. Eco currently holds a 75% operated interest, positioning the company as a key participant in South Africa’s emerging offshore sector.
Additional 20% Interest Acquisition Option
Eco has also secured an option agreement with its South African partner, OrangeBasin Energies, to acquire a further 20% interest in Block 1 CBK. This optional transaction—supported by Navitas on a 50:50 basis—would:
- Strengthen Eco’s operated stake
- Allow settlement in cash or Eco shares
- Leave OrangeBasin with a 5% carried interest through the exploration phase, including up to two contingent exploration wells
This structure places Eco and Navitas in a strong position to advance exploration in one of Africa’s most attractive offshore plays.
Strategic Pathway for Namibia’s Offshore Portfolio
Beyond South Africa, the strategic partnership introduces an Additional Assets Option, allowing Navitas to farm into Eco’s Namibian PEL licences PEL 97, PEL 99, and PEL 100 on mutually negotiated commercial terms.
Eco operates these three Walvis Basin blocks with an 85% working interest, representing nearly 23,000 km² of prospective acreage. Navitas may acquire at least 25% working interests, and potentially operatorship, as part of a long-term collaboration extending five to ten years.
The Walvis Basin continues to draw growing investor attention, following the Orange Basin’s high-profile successes just to the south. The potential entry of Navitas—backed by strong technical, operational, and financial capacity—could accelerate Eco’s Namibian work programmes and drive fresh exploration momentum.
Under the broader partnership, Eco and Navitas have agreed to jointly pursue future African exploration opportunities on a 50:50 basis, aligning long-term strategy across southern Africa. This approach underscores a shared vision for value creation in emerging offshore basins.
Eco CEO Gil Holzman described the collaboration as “transformational,” highlighting Navitas’ financial strength and technical expertise as key to unlocking the significant potential of the company’s South African and Namibian assets.