Navitas Expands South Africa Offshore Position Through Eco Atlantic Block 1 CBK Farm-In Deal
Eco Atlantic Oil & Gas has advanced its offshore South Africa partnership with Navitas Petroleum through a farm-down agreement covering Block 1 CBK in the Orange Basin.
The development follows an earlier agreement in which Eco, through subsidiary Azinam South Africa, secured an exclusive option with local partner OrangeBasin Energies formerly Tosaco Energy to acquire an additional 20% participating interest in Block 1 CBK through a combination of cash and shares.
Under the arrangement, Navitas secured the right to acquire 50% of that option during the initial exploration period, which runs until February 2028.
After reviewing geological and technical data, Navitas exercised the option by signing a definitive farm-out agreement with Eco on May 19, 2026.
Ownership Structure and Regulatory Approvals
The agreement remains subject to approval from the Petroleum Agency South Africa and the TSX Venture Exchange, as well as a $4 million cash payment from Navitas to Eco.
Once completed, Navitas will operate Block 1 CBK with a 37.5% working interest, potentially increasing to 47.5% if the OrangeBasin Energies option is exercised.
Eco will retain a 37.5% stake in the block, with the possibility of increasing its interest to 47.5% under the same option structure.
As part of the agreement, Navitas will fund Eco’s share of the work programme up to a cap of $7.5 million net to Eco, with repayment tied to future production proceeds from the block.
Expanding Atlantic Margin Portfolio
Eco Atlantic CEO Gil Holzman said the agreement strengthens cooperation between the two companies as they continue evaluating exploration opportunities offshore South Africa and across the Atlantic Margin.
Navitas has been expanding its offshore portfolio in recent years, including assets in the Gulf of America and the Falkland Islands.
The company also increased its South Atlantic exposure in early 2026 through an agreement to acquire a 65% stake in the PL001 North Falkland Basin licence.
At the same time, Eco Atlantic moved to acquire JHI Associates, which holds the remaining 35% interest in the licence.
Holzman said the transaction improves Eco’s financial position and aligns with the company’s strategy of partnering with larger operators to reduce exploration risk across its offshore portfolio.
He added that Eco has also expanded partnerships in Namibia, including recent cooperation with BP, while continuing discussions regarding future exploration phases on the Orinduik Block offshore Guyana.
