Tower Resources farm-out approval expected

British oil and gas company Tower Resources says it expects its application for approval of a farm-out agreement to be expedited following meetings with the upstream petroleum unit and the Ministry of Industries, Mines and Energy.

Tower Resources is the operator of petroleum exploration licence (PEL) 96 in the Walvis basin. It signed a farm-out agreement with Prime Global Energies, a Pakistani private company, for a 25% interest in the licence in January 2025.

The company announced on Monday that it had met with the upstream petroleum unit, as well as representatives from the ministry.

“Following the meeting, Tower has been informed that its request for approval of the farm-out to Prime of a 25% interest in PEL96 will now be expedited,” Tower said.

The agreement would raise money to allow the two companies to continue exploration in the oil block.

Under existing legislation, the mines ministry is responsible for approving licences and for the upstream petroleum sector in general. The new petroleum bill – which is under consideration in parliament – will move those responsibilities to the upstream petroleum unit, which reports directly to the president.

Currently, the National Petroleum Corporation of Namibia (Namcor) holds 10% of the licence and ZM Fourteen Investments holds 5%, after it sold half of its 10% share to Tower in March 2025.

Tower said in its announcement that Namcor had completed its due diligence on the proposed farm-in, pending documentation from ZM Fourteen Investments.

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