The transaction was closed after satisfying customary conditions and receiving approvals from Namibian regulatory authorities and joint venture partners of the license.
While ONGC Videsh is the overseas arm of Indian state-owned Oil and Natural Gas Corporation Limited (ONGC), Tullow Namibia is the subsidiary of UK-based Tullow Oil.
Both ONGC and Tullow Oil did not disclose the financial terms of their transaction.
ONGC says that the acquisition is in line with its strategic mission of adding high impact exploration and production (E&P) assets to its existing portfolio. It had entered into a definitive agreement for the Namibian offshore asset in July.
Currently, ONGC Videsh has close to 40 projects through its oil and gas stakes across 18 countries. As on 1 April, 2017, ONGC Videsh’s production stood at nearly 285,000 barrels of oil and oil equivalent gas per day while its total oil and gas reserves (2P) were 704MMTOE.
Tullow Oil, which has reduced its stake from 65% to 35% following the divestiture, will retain its operatorship role of the offshore Namibian oil block.
Other partners in the license are Australia-based Pancontinental Oil & Gas subsidiary Pancontinental Namibia which holds 30% and Namibian firm Paragon Oil and Gas with 5% stake.
PEL 37 comprises 2112A, 2012B and 2113B blocks spread across 17,000km2 in the central Walvis Basin. The blocks are contained in water depths extending to 1,800m.
PEL 37 was first awarded by the Namibian government to Pancontinental and its partner Paragon in 2011. Two years later, Pancontinental divested 65% of its stake to Tullow Oil.
