Cameroon Prime Global Energies Thali Stake Approval: Presidential Endorsement

• Cameroon's presidency has approved the transfer of a 42.5% stake in the offshore Thali oil license from Tower Resources to Prime Global Energies.
• Prime Global Energies will invest $15 million, approximately CFA8.65 billion, into the project's work program, including the NJOM-3 appraisal well.
• This financial commitment represents an investment in the project, not a purchase price paid to Tower Resources for the stake.
• The approval process is ongoing, with the Ministry of Mines, Industry and Technological Development (Minmidt) still preparing an order to extend the license and issue a formal approval letter.
• The presidential letter was sent to the Prime Minister's Office, Minmidt, and the National Hydrocarbons Corporation (SNH).

This crucial approval paves the way for a substantial financial injection into the project's ongoing development.

Tower Resources has announced a significant step forward for the Thali oil project in offshore Cameroon, securing presidential endorsement for the transfer of a 42.5% interest to Prime Global Energies. This crucial approval paves the way for a substantial financial injection into the project's ongoing development.

Under the terms of this arrangement, Prime Global Energies is committed to providing $15 million, equivalent to approximately CFA8.65 billion, to fund the Thali project's work program. A primary focus of this investment is the critical NJOM-3 appraisal well, which is central to evaluating the field's potential. It is important to note that this sum represents a direct investment by Prime Global Energies into the Cameroon oil project, rather than a purchase price paid to Tower Resources for the stake.

The financial conversion from US dollars to Central African Francs is based on specific reference rates. The European Central Bank's reference rate for September 28, 2026, set €1 at $1.1378, while the fixed exchange rate for the CFA franc against the euro stands at CFA655.957 to €1. This detailed financial commitment underscores the scale of the planned Cameroon offshore oil investment.

While presidential approval marks a pivotal milestone, the regulatory journey for the Thali oil license transfer in Cameroon is not yet fully complete. Tower Resources has confirmed receipt of a copy of the official letter from the presidency, which was disseminated to key governmental bodies including the Prime Minister’s Office, the Ministry of Mines, Industry and Technological Development (Minmidt), and the National Hydrocarbons Corporation (SNH).

The next critical phase involves Minmidt, which is currently in the process of preparing a formal order. This forthcoming ministerial directive will serve two primary functions: it will extend the initial exploration period for the Thali license and provide the definitive, formal letter of approval for the stake transfer. This multi-stage regulatory process highlights the layered governmental oversight characteristic of significant energy sector transactions in Cameroon.

This development signals a renewed impetus for the Thali project and underscores the potential for increased Cameroon offshore oil investment. The commitment from Prime Global Energies to fund the work program, particularly the NJOM-3 appraisal well, is expected to significantly advance the project's technical and commercial viability. The involvement of Prime Global Energies also introduces a new player into the country's hydrocarbon landscape, potentially fostering further competition and expertise.

The successful navigation of the initial approval stages for the Cameroon Prime Global Energies Thali stake approval could establish a precedent for future large-scale investments in the nation's energy sector. It demonstrates the government's structured approach to overseeing major transfers and investments, requiring both high-level presidential endorsement and detailed ministerial implementation.

The announcement regarding this crucial Thali oil license transfer Cameroon was made by Tower Resources as part of its interim results, which were published on September 28. The British company's disclosure provided insight into the progress made in securing the necessary governmental endorsements for the deal.

All eyes are now on Minmidt to finalize the administrative steps, including the Minmidt Thali license extension and the issuance of the formal approval letter. The full completion of these regulatory requirements will solidify the agreement and allow Prime Global Energies to fully integrate into the Thali project, advancing the overall SNH Thali project approval and development.

Lawyers advising energy sector clients in Cameroon should monitor the finalization of this approval, as it sets a precedent for the multi-stage regulatory process for significant oil and gas stake transfers and investments, involving both presidential and ministerial sign-offs. It also signals new investment opportunities and players in the offshore sector.

Source: Original reporting via Tower Resources' interim results.