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Eco Atlantic Oil looking for new partner after Tullow pulls plug on joint venture in Namibia

Eco Atlantic Oil looking for new partner after Tullow pulls plug on joint venture in Namibia

Oil and gas exploration company, Eco Atlantic Oil and Gas Ltd stated that it has received a formal notice from Tullow Namibia Limited that it is unable to either enter into the Second Renewal Period under the PEL30 license or to make a financial commitment to drilling on the block.

In accordance with the Joint Venture 2014 farm-out agreement, Tullow is required to make a financial commitment to drill one exploration well before renewing its interest in the Second Renewal Period in the first quarter of 2019. In the event that a well was not drilled having entered the Second Renewal Period, the agreement obligates Eco to a significant penalty.

“Tullow’s decision is as a result of its own proposed farm-in partner, ONGC, as announced on 21 November 2017, now withdrawing from their agreement with Tullow on PEL30 and so due to exploration budget prioritisation, Tullow will now transfer their 25% working interest to Eco,” the statement read.

As a result, Eco has had the 1,100 km2 3D survey, full processing and interpretation and past costs all paid for by Tullow and it will now receive back Tullow’s Working Interest.

On completion of the transfer, Eco will hold a 57.5% Working Interest in the Cooper Block.

Meanwhile with more than three and a half years still to drill on the Cooper Block under the terms of the licence, and with a drill-ready target, the company has already started discussions with potential farm-in partners to replace Tullow and to jointly drill the Osprey Prospect.

Eco’s other partner on the Cooper Block, Azinam Ltd, has previously announced that it would like to proceed with further exploration of the block, including the drilling of a well.

Gil Holzman, the Chief Executive of Eco said in the statement, “We thank Tullow for our four years’ carried partnership on the Cooper Block and for advancing it through extensive 3D studies, interpretation, and targets selection all the way to now being drill-ready.”

“As partners on both sides of the Atlantic, we understand Tullow’s drilling budget prioritisation. This reflects a shift in both Tullow’s and Eco’s priorities to Guyana which clearly remains the focus for both partners, as recently announced by senior executives of both companies. The opportunity the companies share on the Orinduik Block in Guyana is outstanding with much lower near-term risk following the amazing success of ExxonMobil on the adjacent Stabroek Block and our own 3D data interpretation. We expect 2019 to be a significant and defining year for Eco,” he added.

Colin Kinley, COO of Eco said they are discussing the Cooper Block with other potential industry partners as there are many parties currently seeking additional opportunities in the Walvis Basin as Exxon, Total, and the other majors are now moving into the area as exploration matures.


About The Author

Musa Carter

Musa Carter is a long-standing freelance contributor to the editorial team and also an active reporter. He gathers and verifies factual information regarding stories through interviews, observation and research. For the digital Economist, he promotes targeted content through various social networking sites such as the Economist facebook page (/Nameconomist/) and Twitter.

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.