Namibia has approved Eco Atlantic’s sale of an 85% stake in offshore exploration license PEL 98 to locally owned Lambda Energy.
The transaction is part of Eco Atlantic’s strategy to focus on deeper-water assets with greater exploration potential.
The approval reflects faster regulatory processing as Namibia seeks to support investment in its fast-growing offshore oil sector.
Namibia has approved the transfer of an 85% interest in offshore exploration license PEL 98 from Canada’s Eco Atlantic Oil & Gas to locally owned Lambda Energy, clearing the final regulatory hurdle for the transaction.
Eco Atlantic announced on June 29 that it had received government approval to proceed with the sale, allowing Lambda Energy, a company wholly owned by Namibian interests, to take over operations of the offshore block.
Under the agreement, Lambda Energy will make an initial payment to Eco Atlantic to cover administrative costs, although the amount was not disclosed. If Lambda later sells part of its interest in the license to a third party, it will make additional payments to Eco Atlantic, capped at a total of $2 million. Eco Atlantic will also retain a seat on Lambda Energy’s board to support the transition.
The government’s approval marks the final regulatory step required under Namibia’s Petroleum Act to validate the transfer. The two companies are now completing the remaining documentation before formally closing the transaction.
Eco Atlantic CEO and co-founder Gil Holzman said the ministerial approval represents a key milestone toward completing the divestment.
Eco Atlantic Shifts Focus to Deepwater Assets
The sale is part of Eco Atlantic’s broader strategy to refocus its Namibian portfolio on deeper-water exploration licenses with greater potential.
The company plans to concentrate its resources on licenses PEL 97, PEL 99, and PEL 100, which it also holds offshore Namibia.
Eco Atlantic is also negotiating the partial sale of interests in two of those licenses to BP Namibia Energy. The transaction is expected to close in the third quarter of 2026. Under the proposed agreement, BP will pay Eco Atlantic $2.7 million in cash and fund most of the remaining exploration costs on the blocks.
Last month, UK-based Tower Resources also secured final government approval to transfer part of its offshore PEL 96 license to a Pakistani company after a 17-month approval process.
According to Holzman, Namibia’s regulatory approvals are now moving more quickly, boosting investor confidence and helping offshore transactions advance more efficiently.
Since 2022, major international energy companies including TotalEnergies, Shell, and Galp have made significant oil discoveries offshore Namibia, turning the country into one of Africa’s most attractive destinations for oil and gas investment.