This article first appeared on GuruFocus.
BP (NYSE:BP) is making a quiet but meaningful move into Namibia’s offshore energy space and it’s taking control while doing it.
The company is picking up a 60% stake in a group of exploration licenses from Eco Atlantic, along with operatorship of the blocks. These include the Cooper, Guy, and Tamar areas, all part of a region that’s been getting more attention lately as a potential new oil and gas hotspot.
For Eco Atlantic, this looks more like a strategic step than a step back. The company is keeping a 25% stake, so it still has exposure if things go well, but it’s handing over the heavy lifting to a much larger player with more resources and experience.
From BP’s side, this is pretty straightforward. It gets into a promising region and takes control of how the project moves forward, which matters a lot at the exploration stage.