Tower Resources to invest nearly 24 billion on Thali block

The state of Cameroon and Tower Resources, a petrol-gas operator in London, have signed a production sharing for the search of oil at Thalia block, on September 15, 2015.

According to sources, over a period of seven years, this petrol-gas explorer could invest nearly 24 billion FCFA to explore this 119.2 km2 block in the Cameroonian offshore.

An official release from SNH, the oil company, stated that through this agreement, Tower Resources has committed to invest $ 13 million (over 7 billion FCFA) to conduct research on an initial period which is "close to 3 years”.

These works integrate, a "realization of geological and geophysical studies; acquisition, processing and interpretation of 100 Km2 of 3D seismic data; and the drilling of an exploration well”

Based on the results obtained, indicated SNH, Tower Resources will be entitled to a renewal of its exclusivity agreement, for two further periods of 2 years each. In this case, the British petrol-gas operator will develop a new well in each period for the renewal of its contract.

SNH revealed that it is approximately 15 million dollars (about 8.2 billion FCFA) for each new period which is approximately 16.5 billion FCFA over 4 years.

With this new production sharing agreement, Cameroon now totals 21 contracts with petrol-gas operators, since the promulgation of the law of December 22, 1999, on the oil Code in the Republic of Cameroon.