Offshore staff
LONDON – Tower Resources has issued an update on its planned appraisal drilling program on the Thali production-sharing contract (PSC) area offshore Cameroon.
Petroleum operations in Cameroon have been impacted by international and government-imposed travel restrictions due to the Covid-19 virus, so service providers are temporarily limited in what they can do locally, likewise Tower itself.
Last week the company notified the Ministry of Mines, Industry and Technological Development (MINMIDT) of an event of Force Majeure under the terms of the PSC.
Under Force Majeure, Tower explained, the parties’ obligations under an agreement are temporarily suspended: once it is lifted, the same period of around seven months remaining under the current exploration period as at March 17 should remain in place, without any further extension being requested.
Despite Force Majeure, the company has advised MINMIDT that the planned NJOM-3 well could still spud prior to Sept. 15, 2020 if the situation returns to normal.
In any event, the company remains committed to drilling the well as quickly as possible.
Tower and OilLR have also agreed to amend their recent heads of terms involving a farm-in by the latter to extend the proposed completion date to June 30, 2020.
Both parties accept that the transaction cannot be completed until conditions stabilize sufficiently for the project to move forward.
03/30/2020
