Cameroon’s oil sector has reached a pivotal moment with the presidential green light for a significant transaction in the Thali offshore permit. Tower Resources, the British operator behind the project, confirmed it has secured approval to transfer 42.5% of its stake to Prime Global Energies, pending final administrative clearance. The deal involves a $15 million investment commitment by Prime, earmarked for the NJOM-3 appraisal well drilling program, with the amount converting to approximately 8.65 billion FCFA at the European Central Bank’s reference exchange rate on September 28, 2026.
This is not a direct cash payment to Tower. Instead, Prime will finance a portion of the technical program as part of a farm-out arrangement, entitling them to a non-operating stake in Thali. Operational control remains firmly with Tower Resources Cameroon, the London-based group’s local subsidiary, while Prime joins as a partner without operator status.
Bureaucratic hurdles stall finalization in Yaoundé
Despite presidential endorsement, the deal is not yet legally binding. In its half-year results released on September 28, Tower revealed it had received a copy of the presidential letter addressed to the Prime Minister’s office, the Ministry of Mines, Industry and Technological Development (Minmidt), and the National Hydrocarbons Corporation of Cameroon (SNH). The Minmidt must now issue an official decree extending the initial exploration period and formally approve the stake transfer.
The transaction remains on hold until these documents are officially executed. The timeline for completion remains uncertain, a concern amplified by the already delayed exploration program due to insufficient funding for drilling operations.
Prime Global Energies, headquartered in the UK, brings international upstream oil and gas expertise to the table. The company, formerly known as Prime Pakistan Limited and previously Eni Pakistan Limited, benefits from its historical ties to the Italian energy giant Eni. This background offers reassurance to Cameroonian authorities regarding technical reliability, though Prime’s local operational track record remains untested.
NJOM-3 drilling delayed to Q2 2027
The primary objective of Prime’s entry is to secure financing for the NJOM-3 appraisal well on Thali. Tower Resources has revised its drilling schedule, pushing the start date to early Q2 2027—April at the earliest—down from the previous target of Q1. While an earlier commencement remains theoretically possible, the company has adopted the more conservative timeline in its public projections.
“We currently expect to commence drilling in early Q2 2027,” stated Jeremy Asher, CEO of Tower Resources. Contract negotiations for the drilling rig are still underway, with no public updates anticipated until a firm agreement is signed. However, preparations with other essential contractors are already finalized. Tower has also pre-positioned equipment in Douala, including a well suspension system designed to allow temporary closure and potential reuse for production if test results are favorable.
Tower faces financial crisis without Prime’s intervention
The deal with Prime is more than strategic—it is existential for Tower. The company’s half-year 2026 financials paint a stark picture: just $66,583 in cash on hand against $2.91 million in current liabilities. Tower has never produced a barrel and generates no revenue. Over the first six months, $453,000 was capitalized in Cameroon, down from $982,000 a year earlier—funds allocated to NJOM-3 preparations, engineering studies, drilling planning, and Douala office operations.
The $15 million commitment from Prime will cover the remaining costs necessary for the appraisal well. However, subsequent testing and potential commercial development will require additional capital raises. The company has made it clear: without finalizing this farm-out or securing alternative financing or asset transactions, it cannot meet its obligations.
