{"id":2204,"date":"2014-12-19T09:36:40","date_gmt":"2014-12-19T08:36:40","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=2204"},"modified":"2015-05-20T20:01:43","modified_gmt":"2015-05-20T20:01:43","slug":"swala-energy-drops-its-arbitral-claim-in-respect-of-block-12b-kenya","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-drops-its-arbitral-claim-in-respect-of-block-12b-kenya\/","title":{"rendered":"Swala Energy drops its arbitral claim in respect of Block 12B, Kenya"},"content":{"rendered":"

[twitter-follow screen_name=’oilnewskenya’]<\/p>\n

Swala Energy has said it has dropped its arbitration proceedings against CEPSA in respect to Block 12B pursuant to its announcement of the 10th November 2014.<\/p>\n

According to Swala the company, block operator Tullow Oil Kenya B.V and CEPSA Kenya Limited, an affiliate of Compa\u00f1\u00eda Espa\u00f1ola de Petr\u00f3leos, S.A.U., have agreed on an equity distribution under the JOA for Block 12B, effective from the 31st August 2014.<\/p>\n

Under the new disclosed agreement both Tullow and Swala Energy will hold 50 percent meaning that the latter will acquire the entire equity held by CEPSA which withdrew from the block.<\/p>\n

“We are pleased at the amicable resolution of the issues that arose in respect of Block 12B, which allows us to focus on the operational development of 12B ahead of a planned drilling campaign in 2015,”said Swala\u2019s CEO Dr. David Mestres Ridge.<\/p>\n

Compa\u00f1\u00eda Espa\u00f1ola de Petr\u00f3leos \u00a0(CEPSA) withdrew from the PSC after it was uncomfortable with the scheduled drilling<\/a> by Swala Energy by Swala Energy for its first exploratory well in Kenya\u2019s block 12B in 2015.<\/p>\n

According to Swala Energy CEPSA had prefered more time to review the 2D seismic data come to a decision on whether to drill or drop.<\/p>\n

Under the PSC the spanish explorer had committed to carrying Swala\u2019s seismic costs up to a maximum of $2.6 million as well as carry through the first exploration well should they have elected to enter this first additional exploration period of the PSC.<\/p>\n

CEPSA had in September indicated<\/a> it would return its equity interest in accordance with the terms of the Joint Operating Agreement, returning 8.33% to Swala Kenya and 16.67% to Tullow Kenya B.V leading to the arbitral claim by Swala which maintained that CEPSA was obliged to return the entire 25% to Swala Kenya in accordance with the terms of the Farm-Out Agreement (\u201cFOA\u201d) made with CEPSA.<\/p>\n

The transfer of equity back to Swala Kenya is conditional on Ministerial consent, which the parties shall now solicit.<\/p>\n

Earlier this month Swala Energy announced that it is in farm-in<\/a> conversations in Eastern Africa as the company seeks ways of raising alternative funding transactions to finance its drilling obligations ahead of the planned in 2015.<\/p>\n

[twitter-follow screen_name=’oilnewskenya’]<\/p>\n","protected":false},"excerpt":{"rendered":"

[twitter-follow screen_name=’oilnewskenya’] Swala Energy has said it has dropped its arbitration proceedings against CEPSA in respect to Block 12B pursuant to its announcement of the 10th November 2014. According to … Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":1153,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[97,265,431,433,494,696,1252,2214,2447,2571,2572],"class_list":["post-2204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-ahero-a","tag-block-12b","tag-cepsa","tag-cepsa-kenya-limited","tag-compania-espanola-de-petroleos","tag-eastern-africa","tag-kenya","tag-s-a-u","tag-swala-energy","tag-tullow-oil","tag-tullow-oil-kenya-b-v","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy-kenya-1-sm1.jpg?fit=337%2C328&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-zy","jetpack-related-posts":[{"id":1844,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-seeks-arbitration-after-cepsa-withdrawal-from-kenyas-block-12b\/","url_meta":{"origin":2204,"position":0},"title":"Swala Energy seeks arbitration after CEPSA withdrawal from Kenya’s Block 12B","author":"Samuel Kamau Mbote","date":"September 29, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Swala Energy Limited advises that its wholly-owned subsidiary, Swala Energy (Kenya) Limited, has referred to arbitration a dispute with CEPSA Kenya Limited (\u201cCEPSA\u201d) in connection with CEPSA\u2019s withdrawal from Block 12B in Kenya. CEPSA farmed in to Block 12B in Kenya and acquired a 25% equity interest. Upon\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":4470,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-swala-energy-to-carry-out-a-full-tensor-gravity-survey-over-kenyas-block-12b\/","url_meta":{"origin":2204,"position":1},"title":"Tullow Oil, Swala Energy to carry out a FTG Survey over Kenya\u2019s Block 12B","author":"","date":"March 14, 2016","format":false,"excerpt":"Kenya\u2019s Block 12B operator Tullow Oil and joint venture partner Swala Energy have announced that the government of Kenya has approved a new work programme submitted by the explorers involving carrying out a Full-Tensor Gravity (\u201cFTG\u201d) Survey over the block to optimise the location of the exploration well and thereby\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":1283,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-completes-farm-out-with-cepsa-in-kenyas-block-12b\/","url_meta":{"origin":2204,"position":2},"title":"Swala completes farm out with CEPSA in Kenya’s Block 12B","author":"Samuel Kamau Mbote","date":"June 23, 2014","format":false,"excerpt":"Swala has completed a farm out agreement for a 25% working interest in Block 12B in Kenya with Spanish integrated oil and gas company, CEPSA. With all Kenyan government approvals for the deal also in place, we are confident that the completion of a farm out agreement with a major\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/swala-energy-kenya-1-sm1.jpg?fit=337%2C328&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5542,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-exits-kenyas-block-12b\/","url_meta":{"origin":2204,"position":3},"title":"Swala Energy Exits Kenya\u2019s Block 12B","author":"","date":"January 10, 2017","format":false,"excerpt":"There is uncertainty on whether Australian firm Swala Energy which\u00a0held 50 percent equity in Kenya\u2019s block 12B has relinquished its share\u00a0with the Tullow Oil website indicating that the operator now holds 100 percent equity. Swala\u2019s Tanzania subsidiary that remains the only functioning website by the Australian explorer shows no Kenyan\u2026","rel":"","context":"In "Oil Politics"","block_context":{"text":"Oil Politics","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":1480,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-to-sink-exploratory-well-in-nyanza-kenya-in-2015\/","url_meta":{"origin":2204,"position":4},"title":"Swala Energy to sink exploratory well in Nyanza Kenya in 2015","author":"Samuel Kamau Mbote","date":"July 21, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Swala Energy has announced it will be drilling its first exploratory well in Kenya\u2019s block 12B in 2015. The company says the decision follows positive data from the 2D seismic acquired in the block that was completed in the month of June covering 350 kilometers. Under the terms\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":6395,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cepsa-withdraws-kenyas-block-11a\/","url_meta":{"origin":2204,"position":5},"title":"CEPSA Withdraws From Kenya\u2019s Block 11A","author":"","date":"October 11, 2017","format":false,"excerpt":"CEPSA Kenya Limited, an affiliate of Compa\u00f1\u00eda Espa\u00f1ola de Petr\u00f3leos, S.A.U. has withdrawn from Block 11A months after the unsuccessful drilling of Tarach 1 well OilNews Kenya has learnt. 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