(Business in Cameroon) - Yesterday, November 22, 2021, Tower Resources announced that Cameroonian authorities were yet to approve the farmout deal signed with energy commodity trader Beluga Energy on the Thali Block. According to the deal, Tower resources, which is currently the owner or farmer, will cede 49% of stakes to the commodity trader.
The deal was signed in August 2021. About a month later (September 2021), the parties officially requested Cameroonian authorities’ approval in compliance with a provision of the applicable petroleum code. That provision requires the Ministry of Mines to approve the deal or not within sixty days following submission of the official request.
However, Tower Resources claims that up to Saturday, November 20, 2021, it had not received any formal notification or additional information request from the Ministry even though it has fulfilled the required conditions.
As for BelugaEnergy, motivated by hopes to enter the Cameroonian oil exploration market, it is working "on its financing process (…)" and "with the intended rig provider and service companies on the schedule and terms for the NJOM-3 well," Tower Resources reports.
The lack of a decision from Cameroonian authorities about the deal could penalize Tower Resources’ multi-year efforts to attract investors to the project.
Olivier de Souza