BP’s Walvis Basin expansion approved
The Namibian Competition Commission (NaCC) has announced its approval of a merger between
BP Namibia Energy Limited, Azinam Group Limited, Eco Oil & Gas Namibia (Proprietary) Limited and Eco Oil & Gas Services Proprietary Limited. The horizontal merger gives BP Namibia Energy 60% participating interests in petroleum exploration licences (PEL’s) PEL 97, PEL 99, and PEL 100 located in the Walvis Bay Basin, offshore Namibia.
In April, when announcing the deal on bp.com, Gordon Birrell, BP’s executive vice president, production & operations, was quoted saying: “Namibia is a region attracting growing industry interest and has a number of exciting frontier basins. This agreement marks BP’s entry into the country as an operator, strengthens BP’s exploration portfolio and provides long-term growth potential. We look forward to supporting the country in developing its resources.”
The Commission resolved to approve without conditions the proposed transaction pursuant to a Farmout Agreement. Under the agreement, BP Namibia Energy will acquire specified participating interests and assume operatorship of the three offshore PELs.
BP Namibia Energy is a newly established private company incorporated under the laws of England and Wales, according to the NaCC. The new company is ultimately controlled through a corporate chain by BP plc, a publicly listed company on the London Stock Exchange and the New York Stock Exchange. The broader acquiring group headed by BP plc operates across gas and low carbon energy; oil production and operations; customer-focused businesses and products (including convenience retail fuels, refining, and oil trading); and corporate activities such as technology, BP Ventures, and shipping. In Namibia, the acquiring group’s activities are currently limited to the sale of lubricants through importation by local lubricants sales agents, NaCC investigations have established.
The target undertakings include Eco Oil & Gas, a limited liability company incorporated in Bermuda; EcoNam, a company incorporated in Namibia; and Azinam, a limited liability company incorporated in Bermuda. These entities hold participation rights in the three (3) Petroleum Exploration Licences (PELs) central to the transaction.
Eco Oil & Gas and EcoNam do not exercise control over any subsidiaries. By contrast, Azinam exercises control over two subsidiaries, namely Azinam Limited, incorporated in Bermuda, and Azinam South Africa Limited, incorporated in the United Kingdom.
“The commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition or result in any undertaking to acquire or strengthen a dominant position in the market and did not raise any public interest concerns,” NaCC’s statement said.
