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Israeli company to pay Canadian firm US$2.5M to farm-in Guyana’s Orinduik Block, become operator
By Renay Sambach
(Kaieteur News) – Canadian exploration company Eco (Atlantic) Oil & Gas Ltd. has entered a binding framework agreement and two option agreements with Israeli firm Navitas Petroleum, for the Orinduik Block offshore Guyana and Block 1 CBK offshore South Africa.
Eco announced on Thursday that Navitas will pay an initial US$2 million to secure the Orinduik Option and Block 1 CBK Option. This was signed on December 3, 2025.
Eco President and Chief Executive Officer (CEO), Gil Holzman
The Canadian firm has been in talks with prospective partners for some time in relation to the farm-in of the Orinduik Block, for the next phase of exploration. The Orinduik option grants Navitas the right, within 12 months and upon paying an additional US$2.5 million, to farm-in to the Orinduik Block and taking up 80 per cent working interest and operatorship. It was explained that Eco’s remaining 20 per cent share will be fully carried for upcoming work, including drilling an exploration well or appraising the Jethro-1 and Joe-1 heavy oil discoveries. Also, the Orinduik carry is capped at US$11 million net to Eco, excluding mobilisation costs.
Eco has been assessing its Jethro-1 and Joe-1 discoveries, which are located in the lower and upper tertiary formations of the Orinduik Block. Both contain heavy oil, and Eco had been conducting further analysis to determine whether development is feasible.
The company previously noted that the proximity of the Orinduik Block finds to ExxonMobil Guyana Limited’s Stabroek Block, where the Government of Guyana recently approved a Petroleum Production Licence (PPL) for Exxon’s seventh project (Hammerhead) has renewed its interest in the Jethro discovery.
Eco pointed out that until the Hammerhead development, Exxon’s first six sanctioned projects were light oil cretaceous discoveries. Eco said Exxon’s move to develop Hammerhead has proved that a heavy oil discovery in the tertiary can be made economic. It was Eco’s president and Chief Executive Officer (CEO), Gil Holzman who said that Exxon’s decision to advance Hammerhead has encouraged Eco to revisit the 1-billion-barrel Jethro heavy oil discovery made in 2019. He had also disclosed that it is in discussions with the government about potentially re-evaluating and recalling the non-commercialisation notice previously issued by Tullow, with a view to taking a fresh look at the heavy oil development potential.
Moreover, as for the Block 1 CBK Option allows Navitas to acquire up to a 47.5 per cent working interest and operatorship in the South African block within six months, on payment of US$4 million. Eco’s carried amount in Block 1 CBK is capped at US$7.5 million. Eco said Navitas will also have the option, subject to commercial terms, to acquire at least 25 per cent of Eco’s working interests excluding Guyana and Block 1 CBK and potentially assume operatorship in other assets including Namibia’s PEL97, PEL99 and PEL100, as well as Eco’s stake in Azinam Limited, which holds South Africa’s Block 3B/4B. As part of the partnership, Eco shall invite Navitas to join future new ventures on a 50-50 basis.
Moreover, commenting on the agreements, Eco’s CEO said, “This strategic partnership with Navitas, a multi-billion-dollar company with a strong record in acquiring, financing, and developing high-impact oil and gas projects, is truly transformational for Eco Atlantic.”
He noted that the proposed Guyana and South Africa farm-ins will accelerate growth across its portfolio. “Navitas’ excellent leadership team, technical strength, operational expertise, and financial capacity provide exactly the strategic support needed to unlock the full potential of our assets in South Africa and Guyana,” Holzman said.
He disclosed that there will be a joint visit by Eco and Navitas teams to Guyana later this month. Following this trip, Holzman said Eco expect to gain clarity on the work programme and appraisal plan for Orinduik. “We believe this partnership paves the way for our planned exploration and appraisal programmes on the block towards commercialisation, which will be carried and operated by Navitas, and will serve as a high-impact catalyst for the company,” he added.
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