Serica Energy said the Namibian government had given the thumbs up to a farm-in deal with BP.
The firm said the Namibian Minister of Mines and Energy had consented to the assignment by Serica of a 30% interest in its Luderitz Basin Licence 0047.
Under the terms of the farm-in, BP has agreed to earn a 30% interest in the licence by meeting the full cost of a 3D seismic survey over an area of up to 4,150 square kilometres.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The deal will leave Serica with a 55% share in the licence.
"Both Serica and BP have shown significant commitment to the exploration efforts taking place offshore Namibia and we welcome the support and assistance which has been given by the Ministry to enable joint operations to proceed so quickly, smoothly and efficiently," said Chairman Tony Craven Walker.
BP also has an option to acquire a further 37.5% of the licence from Serica by meeting the full cost of drilling and testing an exploration well to the Barremian level.
-
SIPP holders to get cash warnings and be offered default fundsNews Providers will be required to offer investors a default fund and must warn customers of the inflationary risk of cash savings the regulator has said. What the new rules mean for your retirement pot?
-
Zoopla: Asking price discounts hit a five-year high – is now the time to buy a property?
News Zoopla’s October House Price Index shows sellers are accepting discounts of 5.5% on average to secure a sale – we reveal where homeowners are taking the biggest asking price cuts
