{"id":4696,"date":"2016-05-17T10:49:00","date_gmt":"2016-05-17T10:49:00","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4696"},"modified":"2017-01-25T08:23:26","modified_gmt":"2017-01-25T08:23:26","slug":"otto-energy-in-legal-suit-with-swala-energy-over-tanzanias-pangani-licence","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-in-legal-suit-with-swala-energy-over-tanzanias-pangani-licence\/","title":{"rendered":"Otto Energy in Legal Suit with Swala Energy over Tanzania\u2019s Pangani Licence"},"content":{"rendered":"

Swala Energy Limited has said it has been served notice by lawyers acting on behalf of Otto Energy Limited that Otto has commenced a legal action against the Company, Swala Oil and Gas (Tanzania) plc (SOGTP) and current and certain former directors of the Company and is seeking to recover a gross amount of approximately US$1,000,000 plus alleged damages.<\/p>\n

Otto’s action relates to the Pangani licence, a licence operated by SOGTP with a 25% working interest with Swala Energy holding a 58.5% interest in SOGTP.<\/p>\n

Swala Energy together with SOGTP and the Company\u2019s current and former directors add they intend to defend such legal action with vigour and, having taken initial legal advice, are of the opinion that Otto\u2019s claim has no legal merit.<\/p>\n

The Pangani licence a large frontier licence (17,156km2) located in the Pangani Rift, on one arm of the Northern Tanzanian Divergence triple junction is part of the East African Rift System that, in the west, runs from Uganda to Malawi, and in the east from Kenya to Tanzania.<\/p>\n

Swala Energy (operator) and Otto Energy were awarded the Production Sharing Agreements (PSA) for Pangani \u00a0in February2012 after which the joint venture partners conducted analysis of legacy gravity and magnetic data, followed by acquisition of new airborne gravity and magnetic data.<\/p>\n

Later in 2013 the partners undertook a 2D seismic program over exploration licence area. In February 2014 the joint venture partners agreed to enter into Years 3 and 4 of the agreement involving a commitment to drill one exploration well in each contract area before February 2016 and the acquisition of additional seismic data to allow optimal well positioning.<\/p>\n

Last August the operator added that the Tanzanian Ministry of Energy and Mining (MEM) had agreed to extend<\/a> the period within which an exploration well must be drilled in the Pangani licence to the 20th February 2017<\/p>\n

This year Swala Energy reported it had notified the Tanzania Petroleum Development Corporation together with partners Tata Petrodyne and Otto energy its desire to relinquish<\/a> the Pangani licence after the technical review of the licence showed no structures of commercial interest.<\/p>\n","protected":false},"excerpt":{"rendered":"

Swala Energy Limited has said it has been served notice by lawyers acting on behalf of Otto Energy Limited that Otto has commenced a legal action against the Company, Swala … 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":[3528,4462,1968,2447,2452,2466,2472,4193],"class_list":["post-4696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-ministry-of-energy-and-mining","tag-otto-energy-limited","tag-pangani-licence","tag-swala-energy","tag-swala-oil-and-gas-tanzania-plc","tag-tanzania","tag-tanzania-petroleum-development-corporation","tag-tata-petrodyne","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-1dK","jetpack-related-posts":[{"id":4889,"url":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-pushes-to-remove-swala-energy-as-operator-in-tanzanias-kilosa-kilombero-license\/","url_meta":{"origin":4696,"position":0},"title":"Otto Energy pushes to Remove Swala Energy as Operator in Tanzania’s Kilosa-Kilombero License","author":"","date":"August 1, 2016","format":false,"excerpt":"Otto Energy Ltd through its wholly-owned subsidiary, Otto Energy (Tanzania) Pty Ltd, has said \u00a0it wants current operator Pangani and Kilosa-Kilombero licenses relieved off its role after defaulting in various cash calls. According to Otto Energy its subsidiary has issued various notices to Swala Oil and Gas (Tanzania) plc (SOGTP),\u2026","rel":"","context":"In "Oil Politics"","block_context":{"text":"Oil Politics","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-politics\/"},"img":{"alt_text":"Kito Prospect Map","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Kito-Prospect-Map.png?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Kito-Prospect-Map.png?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Kito-Prospect-Map.png?resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/03\/Kito-Prospect-Map.png?resize=700%2C400 2x"},"classes":[]},{"id":5424,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tata-petrodyne-farm-in-behind-swala-otto-energy-dispute-in-tanzania\/","url_meta":{"origin":4696,"position":1},"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. According to Swala Energy in it latest presentation to shareholders the two joint venture partners had earlier agreed on a joint farm-down by Tata Petrodyne\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\/2015\/10\/Tata-Swala.jpg?fit=200%2C200&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5289,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-pushes-tanzanias-kito-1-drilling-pushed-to-2017\/","url_meta":{"origin":4696,"position":2},"title":"Swala Energy Pushes Tanzania’s Kito 1 Drilling Pushed to 2017","author":"","date":"October 14, 2016","format":false,"excerpt":"Swala Oil & Gas (Tanzania) plc has announced that it will not be drilling the Kito-1 exploration well in the Kilosa-Kilombero licence during 2016 as originally envisaged in part because of the delays imposed by the timing of the necessary permits. Despite planning for the well proceeded within time and\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":3217,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-gets-ministerial-consent-tanzania-farm-outs\/","url_meta":{"origin":4696,"position":3},"title":"Swala Energy gets Ministerial Consent for Tanzania Farm-Outs","author":"","date":"August 6, 2015","format":false,"excerpt":"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 of 50% of its interests in the Kilosa-Kilombero and Pangani licences to Tata Petrodyne Limited (TPL). 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