Namibia has approved the transfer of an 85 percent stake in offshore exploration licence PEL 98 from Canada-based Eco Atlantic Oil & Gas to locally owned Lambda Energy, clearing the final regulatory requirement for the transaction.
Eco Atlantic announced on June 29 that it had received government approval to complete the sale, allowing Lambda Energy, a company fully owned by Namibian interests, to take control of operations on the offshore block.
The approval represents the final step required under Namibia’s Petroleum Act to validate the transfer. The two companies are now finalising remaining documentation before formally completing the transaction.
Under the agreement, Lambda Energy will make an initial payment to Eco Atlantic to cover administrative costs, although the value was not disclosed. Should Lambda later sell part of its interest in the licence to another investor, additional payments will be made to Eco Atlantic, capped at a total of US$2 million.
Eco Atlantic will also retain representation on Lambda Energy’s board to support a smooth transition following the ownership change.
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Eco Atlantic Chief Executive Officer and co-founder Gil Holzman said the ministerial approval was a major milestone towards completing the divestment.
The transaction forms part of Eco Atlantic’s broader strategy to focus its resources on deeper-water exploration opportunities offshore Namibia that are considered to have greater potential.
The company plans to concentrate on its remaining exploration licences, including PEL 97, PEL 99 and PEL 100.
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Eco Atlantic is also in discussions to sell partial interests in two of those licences to BP through BP Namibia Energy. The deal, expected to close in the third quarter of 2026, would see BP pay $2.7 million in cash and finance most of the remaining exploration costs on the blocks.
The approval of the PEL 98 transfer comes as Namibia’s offshore oil sector continues to attract major international investors following a series of discoveries since 2022 by companies including TotalEnergies, Shell and Galp.
These discoveries have positioned Namibia as one of Africa’s most promising emerging oil and gas frontiers, drawing increased interest from global energy companies seeking new exploration opportunities.
Holzman said faster regulatory approvals in Namibia were improving investor confidence and helping offshore transactions progress more efficiently.
The government’s support for local participation in the sector, combined with continued exploration activity, is expected to shape the future development of Namibia’s petroleum industry as the country seeks to attract investment while expanding domestic involvement in its natural resources sector.
