Oil and gas exploration company Eco (Atlantic) Oil & Gas has received approval from Guyana to acquire a 60% interest in the country’s offshore Orinduik Block from independent oil and gas exploration and production company Tullow Oil.
The company will assume operatorship of the block through an upfront payment of $700,000 and contingent consideration in the event of a commercial discovery.
With approval from Guyana’s Minister of Natural Resources, Vickram Bharat, Eco (Atlantic) Oil & Gas will hold an aggregate 75% participating interest in the Orinduik Block while oil and gas operating company, TOQAP Guyana, will retain the remining 25% stake.
“We have always been very involved with the exploration and interpretation of the Block, and our experienced team will step directly into operatorship to finalize target selection,” stated Colin Kinley, Co-Founder and COO of Eco Atlantic.
Completion of the transaction is expected by the end of 2023, with Eco (Atlantic) Oil & Gas currently embarking on a search for new partners in the concession.
The transaction was first announced in August this year, with Eco (Atlantic) Oil & Gas and Tullow Oil having signed a Sale Purchase Agreement for the Block.
