Tullow Oil PLC subsidiary Tullow Namibia Ltd. has entered into an initial agreement to acquire the interest of Australia's Calima Energy Ltd. in the Namibia PEL 90 license for US$12 million, according to a May 23 statement from Calima Energy Ltd.
Calima, which also serves as operator, holds a 56% stake in the project, based on its 2018 financial report. The offshore block is in Namibia's Orange River Basin.
Calima will receive US$2.0 million upon the deal completion and success bonuses of US$10 million to be paid in two tranches, each after the grant of a production license and upon the start of commercial production.
The deal still requires a formal sale and purchase agreement and other approvals.