BP expands Africa oil bet with stake in Namibia offshore block

BP, a global energy company, has moved to strengthen its upstream footprint in Africa with a new operating stake in offshore exploration blocks in Namibia, marking its first operator role in the southern African nation. The deal underscores a renewed push into frontier oil basins as global majors reposition portfolios around high-return hydrocarbons.

Namibia has rapidly emerged as one of the most closely watched offshore exploration zones in the world, driven by a string of deepwater discoveries that have drawn comparisons to early-stage oil provinces in Guyana and Brazil.

Deal structure and partners

Under the agreement, BP will acquire a 60% operating interest in three offshore petroleum exploration licences from Canada-based Eco Atlantic Oil & Gas for $2.7 million in cash.

Eco Atlantic will retain a minority stake alongside Namibia’s state-owned oil company NAMCOR, ensuring continued local participation in the blocks.

The assets are located in the Walvis Basin, north of the more prolific Orange Basin, where major oil discoveries by global operators including Shell and TotalEnergies have already reshaped expectations for Namibia’s long-term production outlook.

Africa’s new exploration hotspot

Namibia’s offshore basin complex has become a magnet for capital as oil majors seek new reserves outside mature production zones.

The government has set expectations for first oil production by 2030, positioning the country as a potential long-term supplier in a tightening global energy market.

BP’s entry adds another heavyweight to a competitive landscape already defined by rapid seismic activity, deepwater drilling campaigns, and escalating farm-in deals across southern Africa.

Portfolio rebalancing back to oil and gas

The move aligns with BP’s broader strategy reset, as the company scales back its earlier aggressive pivot into renewables and refocuses on core oil and gas profitability.

The group has committed to divesting up to $20 billion in assets and targeting net debt reduction to between $14 billion and $18 billion by the end of 2027.

By expanding into Namibia, BP is effectively signaling that frontier offshore assets remain central to its long-term production and cash flow strategy, even as it maintains selective investments in low-carbon technologies.