The farm-out agreement gives each firm a 25% stake in the block, while Brazilian oil company Petrobras retains a 50% stake and will take up operatorship.
Under the deal, BP will pay Chariot’s cost of drilling the first exploration well, as well as past costs incurred.
The farm-out agreement remains subject to approval of Namibia’s Ministry of Mines and Energy.
Chariot Oil & Gas chief executive Paul Welch said it has been a key strategic objective for the company to farm down its assets in order to facilitate exploration drilling, retain capital and mitigate risk.
Located in the Orange Basin offshore Namibia, the Block 2714A covers an area of 5,481 sq km.
