{"id":3217,"date":"2015-08-06T00:00:21","date_gmt":"2015-08-06T00:00:21","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=3217"},"modified":"2015-08-05T22:45:26","modified_gmt":"2015-08-05T22:45:26","slug":"swala-energy-gets-ministerial-consent-tanzania-farm-outs","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-gets-ministerial-consent-tanzania-farm-outs\/","title":{"rendered":"Swala Energy gets Ministerial Consent for Tanzania Farm-Outs"},"content":{"rendered":"

Swala Energy Limited has reported that its subsidiary company Swala Oil and Gas (Tanzania) Plc has received a no objection notice from the Tanzanian Ministry of Energy and Mines to the farm-out<\/a> of 50% of its interests in the Kilosa-Kilombero and Pangani licences to Tata Petrodyne Limited (TPL).<\/p>\n

The consent from the Tanzanian Petroleum Development Corporation, the Tanzanian Revenue Authority and now from the Ministry of Energy and Mines means that the Company is awaiting only the consent of the Fair Competition Commission.<\/p>\n

According to Swala Energy CEO Dr. David Mestres Ridge, Swala CEO the approval is a positive step that the East African nation is yearning for investors to carry on exploration activities rapidly and without government bureaucracy related bottlenecks.<\/p>\n

“The rapid approval by the Tanzanian regulators to the farm-out of the SOGTP licences illustrates their desire to encourage activity in this important economic sector. We are confident that the FCC consent shall be received soon, which shall allow TPL to join the licence joint venture ahead of the planned drilling campaign,\u201d he says.<\/p>\n

The terms of the agreement with TPL:<\/p>\n

On receipt of governmental approvals for the transfer of interest TPL will pay Swala Tanzania the sum of US$5.7 million for a 25% equity interest in the Kilosa-Kilombero licence and a 25% equity interest in the Pangani licence as consideration towards the past costs incurred on the licences;<\/p>\n

TPL will free carry Swala Tanzania through the costs of the initial well on the Kilosa-Kilombero licence, up to a maximum of US$2.5 million (Swala estimates the gross cost of the well to be US$10.0 million);<\/p>\n

TPL will free carry Swala Tanzania through the costs of the initial well on the Pangani licence, up to a maximum of US$2.125 million (Swala estimates the gross cost of the well to be US$8.5 million); and<\/p>\n

TPL will pay Swala Tanzania up to a further US$1.0 million towards the cost of a second well following a commercial discovery in the initial well on the Kilosa-Kilombero licence. Costs incurred above this sum shall be shared by the partners in proportion to their equity.<\/p>\n

On completion of the farm-out, the equity interest in the two licences will be: Swala Tanzania 25% TPL 25% Otto 50%<\/p>\n","protected":false},"excerpt":{"rendered":"

Swala Energy Limited has reported that its subsidiary company Swala Oil and Gas (Tanzania) Plc has received a no objection notice from the Tanzanian Ministry of Energy and Mines to … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1747,"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":true,"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":[3479,1588,1968,2447,2466,2481,3480,3266],"class_list":["post-3217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-kilosa-kilombero-licence","tag-ministry-of-energy-and-mines","tag-pangani-licence","tag-swala-energy","tag-tanzania","tag-tanzanian-petroleum-development-corporation","tag-tanzanian-revenue-authority","tag-tata-petrodyne-limited","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/swala-energy-ears.png?fit=329%2C474&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-PT","jetpack-related-posts":[{"id":3888,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-completes-farm-out-of-kilosa-kilombero-and-pangani-licence-interests-to-tpl\/","url_meta":{"origin":3217,"position":0},"title":"Swala Energy Completes Farm-Out Of Tanzania’s Kilosa-Kilombero And Pangani Licence Interests To TPL","author":"","date":"October 8, 2015","format":false,"excerpt":"Swala Energy has announced that its subsidiary Swala Oil and Gas (Tanzania) Plc and Tata Petrodyne Limited (TPL) have finalised the outstanding terms of their farmout agreement for the Kilosa-Kilombero and Pangani licences in Tanzania. Following by the finalization the parties shall now proceed to payment of the reimbursable past\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\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3919,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tata-petrodyne-seals-farm-out-transaction-with-swala-energy-after-payment-of-5-7-million\/","url_meta":{"origin":3217,"position":1},"title":"Tata Petrodyne seals farm-out transaction with Swala Energy after payment of $5.7 million","author":"","date":"October 19, 2015","format":false,"excerpt":"Swala Energy Limited has confirmed that US$5.7 million has been received from Tata Petrodyne Limited (TPL) pursuant to the farm-out transaction with TPL for the Kilosa-Kilombero and Pangani licences in Tanzania. This was one of the outstanding terms of their farmout agreement for the Kilosa-Kilombero and Pangani licences in Tanzania\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\/2015\/10\/Tata-Swala.jpg?fit=200%2C200&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3036,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-completes-farm-tanzanian-licenses-tata-petrodyne\/","url_meta":{"origin":3217,"position":2},"title":"Swala Energy Completes farm-out of Tanzanian Licenses to Tata Petrodyne","author":"","date":"June 1, 2015","format":false,"excerpt":"Swala Energy Limited has announced that Swala Oil and Gas (Tanzania) Plc has reached agreement with Tata Petrodyne Limited a subsidiary of the multinational Tata Sons Limited, under which TPL shall farm into the Pangani and Kilosa-Kilombero licences in Tanzania. Tata Sons Limited is the holding company of the Tata\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\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":5434,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-jv-partners-risk-losing-kilosa-kilombero-in-tanzania\/","url_meta":{"origin":3217,"position":3},"title":"Swala Energy JV Partners Risk Losing Kilosa-Kilombero in Tanzania","author":"","date":"November 28, 2016","format":false,"excerpt":"Kilosa-Kilombero block operator Swala and joint venture partners Otto Energy, Tata Petrodyne and MV Upstream are in the risk of losing their license with every indication they are likely to meet their commitment obligations following their ongoing dispute and court case in the Australian high court. The partners had earlier\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\/2016\/03\/Kito-Prospect-Map.png?fit=899%2C529&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Kito-Prospect-Map.png?fit=899%2C529&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Kito-Prospect-Map.png?fit=899%2C529&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Kito-Prospect-Map.png?fit=899%2C529&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5712,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-hints-12-month-license-extension-in-tanzanias-kilosa-kilombero\/","url_meta":{"origin":3217,"position":4},"title":"Swala Oil & Gas Hints 12 month License Extension in Tanzania\u2019s Kilosa Kilombero","author":"","date":"February 27, 2017","format":false,"excerpt":"Swala Oil & Gas (Tanzania) plc has announced that it has received a 12 month extension from the Ministry of Energy and Mines at the Kilosa Kilombero license although with a caveat that the contractors provide financial guarantees covering the minimum well commitment before it extended the Production Sharing Agreement\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\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":5424,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tata-petrodyne-farm-in-behind-swala-otto-energy-dispute-in-tanzania\/","url_meta":{"origin":3217,"position":5},"title":"Tata Petrodyne Farm-in behind Swala, Otto Energy dispute in Tanzania","author":"","date":"November 23, 2016","format":false,"excerpt":"A simmering dispute between two Australian companies Swala and Otto Energy in Tanzania could have emanated from a failed joint farm-down by Tata Petrodyne Limited. 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