Namibia approves Tower Resources PEL96 farm-out deal

Key Facts

In a development that boosts offshore exploration activity in Namibia, Tower Resources has received formal approval from the Ministry of Industries, Mines and Energy for the farm-out of its PEL96 licence to Prime Global Energies. The approval was the only outstanding condition precedent under the farm-out contract first announced in January 2025, according to media reports.

The milestone comes as Namibia attracts growing interest from major oil companies, with significant discoveries made in the Orange Basin off its coast. For London-based Tower Resources, the PEL96 farm-out deal represents a critical step to fund future operations and streamline its portfolio following a period of strategic review.

With the regulatory hurdle cleared, investors now await the formal completion of the transaction and subsequent drilling and evaluation plans. The focus remains on the company's ability to execute the work programme on the licence amid rising competition for Namibian oil assets.