BP has agreed to acquire an operating interest in three offshore exploration blocks in Namibia, marking a renewed push into oil and gas as major energy companies continue to shift focus back toward fossil fuel development.
The British energy company will purchase a 60 percent stake in the licences from Canada-based Eco Atlantic Oil & Gas for US$2.7 million in cash, Eco Atlantic said on Monday.
The deal gives BP an operating role in the Walvis Basin, a frontier offshore region in southern Namibia that sits north of the Orange Basin, where several major oil discoveries have recently been made by international energy firms.
Eco Atlantic will retain a partnership stake in the blocks alongside Namibia’s national oil company, NAMCOR, according to the companies.
The move represents BP’s latest step in strengthening its upstream oil and gas portfolio after scaling back ambitions in renewable energy and refocusing on hydrocarbons amid shareholder pressure and profitability concerns.
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The company has committed to divesting around US$20 billion in assets and reducing net debt to between $14 billion and US$18 billion by the end of 2027, as part of its broader strategy reset.
BP’s renewed emphasis on upstream exploration comes as global energy majors reassess investment priorities in response to volatile markets and persistent demand for oil and gas, despite long-term decarbonisation targets.
The company has faced scrutiny from investors seeking clearer evidence that its pivot back toward fossil fuels will deliver stronger returns after earlier investments in low-carbon energy failed to meet expectations.
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The Namibia deal also underscores growing industry interest in the country’s offshore potential, as exploration activity intensifies along its Atlantic margin.
Namibia has emerged in recent years as one of the world’s most closely watched frontier oil provinces, following significant discoveries in adjacent basins that have attracted companies including Shell and TotalEnergies.
Authorities in Windhoek have expressed hopes that first oil production could begin by 2030, positioning the country as a potential new entrant into global oil markets if commercial viability is confirmed.
For BP, the acquisition provides entry into an operating position in a region seen as increasingly strategic for future offshore development, particularly as major basins elsewhere mature.
Analysts say the Walvis Basin remains less explored compared with neighbouring areas but could hold significant untapped reserves, though commercial outcomes are still uncertain at this early stage of exploration.
The transaction reflects a broader trend among international oil companies increasing upstream investment while balancing shareholder expectations, energy security concerns and long-term transition strategies.
As competition for high-potential offshore acreage intensifies, Namibia continues to attract attention from global energy players seeking new exploration frontiers in a tight and increasingly contested market.
