{"id":4774,"date":"2016-06-21T08:59:13","date_gmt":"2016-06-21T08:59:13","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4774"},"modified":"2017-01-25T07:28:13","modified_gmt":"2017-01-25T07:28:13","slug":"otto-energy-agrees-farm-out-of-kilosa-kilombero-licence-to-mv-upstream","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-agrees-farm-out-of-kilosa-kilombero-licence-to-mv-upstream\/","title":{"rendered":"Otto Energy Agrees Farm-Out Of Tanzania&#8217;s Kilosa-Kilombero Licence to MV Upstream"},"content":{"rendered":"<p>Otto Energy a joint venture partner in Kilosa-Kilombero Licence with 50% interest has announced that it has reached an agreement with MV Upstream Tanzania Limited (MV Upstream), a joint venture between Vegas Oil &amp; Gas Limited, (Vegas) and Motor Oil Hellas SA (MOH) in respect of the assignment of a 25% participating interest in the Licence onshore Tanzania.<\/p>\n<p>Under the terms of the farm down agreement with MV Upstream:<\/p>\n<ul>\n<li>MV Upstream shall pay to Otto the sum of US$2.3 million (inclusive of applicable taxes) for a 25% participating interest in the Licence as reimbursement of historical costs incurred by Otto.<\/li>\n<li>In addition to paying its 25% participating interest share of well costs, MV Upstream shall carry Otto\u2019s remaining 25% working interest through the drilling of the Kito prospect up to an amount of US$2 million. Costs over and above this capped amount shall be payable by Otto in accordance with its remaining 25% participating interest. Well costs are currently estimated at around US$10 million.<\/li>\n<li>In the event of a discovery at Kito, MV Upstream shall carry Otto\u2019s remaining 25% working interest through the drilling of an appraisal well up to an amount of US$1 million.<\/li>\n<\/ul>\n<p>According to Otto\u2019s Managing Director, Matthew Allen the inclusion of Vegas and its successful track record in exploration, development and production will inject much needed experience to the joint venture as well as leaves Otto\u2019s balance sheet conserved.<\/p>\n<p>\u201cThe Vegas group has an extremely successful track record in exploration, development and production, particularly in Egypt, where the group has operated for more than 30 years and MOH is a substantial business with interests and holdings across all aspects of the downstream value chain. The farm down provides Otto shareholders with meaningful exposure to the high-impact exploration well targeting the 194MMbbl (gross Prospective Resource) <a href=\"http:\/\/ow.ly\/ht5v301thDf\">Kito prospect<\/a>, whilst conserving the Company\u2019s balance sheet,\u201d he says.<\/p>\n<p>The joint venture continues to make preparations for drilling, with final rig selection and permitting continuing ahead of an expected spud date in the second half of 2016. A discovery at Kito would open up several follow up targets within the Kilosa-Kilombero Licence.<\/p>\n<p><a href=\"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/06\/Kito-prospect-info.png?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4775 size-full\" src=\"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/06\/Kito-prospect-info.png?resize=619%2C298&#038;ssl=1\" alt=\"Kito prospect info\" width=\"619\" height=\"298\" srcset=\"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/06\/Kito-prospect-info.png?w=619&amp;ssl=1 619w, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/06\/Kito-prospect-info.png?resize=100%2C48&amp;ssl=1 100w, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2016\/06\/Kito-prospect-info.png?resize=300%2C144&amp;ssl=1 300w\" sizes=\"auto, (max-width: 619px) 100vw, 619px\" \/><\/a><\/p>\n<p>\u201cThe carried drilling in Tanzania extends what continues to be an active period for Otto post the Company\u2019s recent maiden discovery in the Gulf of Mexico and ahead of its planned multi-well campaign on the Alaskan North Slope,\u201d adds Mathew.<\/p>\n<p>The transaction is conditional upon customary Tanzanian regulatory and joint venture approvals prior to completion.<\/p>\n<p>Otto was advised on this transaction by First Energy Capital in London.<\/p>\n<p>Swala is the block operator wth 25% interest after a successful <a href=\"http:\/\/ow.ly\/riU0301thpt\">farm-out<\/a> to Tata Petrodyne Limited a subsidiary of the multinational Tata Sons Limited at a cost US$5.7 million. If approved the new equity holding will be Swala Energy (operator) 25%, Otto Energy 25%,Tata Petrodyne 25% and MV Upstream 25%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Otto Energy a joint venture partner in Kilosa-Kilombero Licence with 50% interest has announced that it has reached an agreement with MV Upstream Tanzania Limited (MV Upstream), a joint venture &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-agrees-farm-out-of-kilosa-kilombero-licence-to-mv-upstream\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1973,"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":[3060,3479,1337,4603,4601,1940,2447,2466,4193,4602],"class_list":["post-4774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-first-energy-capital","tag-kilosa-kilombero-licence","tag-kito-prospect","tag-motor-oil-hellas-sa","tag-mv-upstream","tag-otto-energy","tag-swala-energy","tag-tanzania","tag-tata-petrodyne","tag-vegas-oil-gas-limited","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/kilosa-kilombero.png?fit=337%2C329&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1f0","jetpack-related-posts":[{"id":5424,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tata-petrodyne-farm-in-behind-swala-otto-energy-dispute-in-tanzania\/","url_meta":{"origin":4774,"position":0},"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 &quot;Oil Politics&quot;","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":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":4774,"position":1},"title":"Otto Energy pushes to Remove Swala Energy as Operator in Tanzania&#8217;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 &quot;Oil Politics&quot;","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":5153,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzanias-kito-prospect-drilling-in-doubt-as-jv-dispute-rages\/","url_meta":{"origin":4774,"position":2},"title":"Tanzania\u2019s Kito Prospect Drilling in Doubt as JV dispute rages","author":"","date":"September 14, 2016","format":false,"excerpt":"The drilling of the Kito prospect in the Kilosa-Kilombero license in Tanzania earlier set for Q3 2016 is in doubt going by the latest corporate presentation by JV partner Otto Energy. In March Block operator Swala Energy had said that all is set to drill at the Kilosa Kilombero license\u2026","rel":"","context":"In &quot;Top News&quot;","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\/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":5289,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-pushes-tanzanias-kito-1-drilling-pushed-to-2017\/","url_meta":{"origin":4774,"position":3},"title":"Swala Energy Pushes Tanzania&#8217;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 &quot;Oil Politics&quot;","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":5908,"url":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-doubtful-of-kito-1-drilling-until-disputes-are-resolved\/","url_meta":{"origin":4774,"position":4},"title":"Otto Energy Doubtful of Kito-1 Drilling Until Disputes Are Resolved","author":"","date":"May 4, 2017","format":false,"excerpt":"Joint venture partner in the Kilosa-Kilombero license Australian explorer Otto Energy has poured cold water on the drilling of Kito-1 well until outstanding disputes with Operator, Swala Oil & Gas (Tanzania) plc (SOGT) \u00a0are resolved in its latest quarterly report. \u201cForward Plan Until the outstanding joint venture disputes are resolved,\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"Kilosa Kilombero work programme guarantee","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/02\/Kilosa-Kilombero-work-programme-guarantee.png?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/02\/Kilosa-Kilombero-work-programme-guarantee.png?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/02\/Kilosa-Kilombero-work-programme-guarantee.png?resize=525%2C300 1.5x"},"classes":[]},{"id":7053,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-pushes-kito-1-well-drilling-2019\/","url_meta":{"origin":4774,"position":5},"title":"Swala Oil &#038; Gas Pushes Kito 1 Well Drilling to 2019","author":"","date":"June 12, 2018","format":false,"excerpt":"The drilling of the Kito 1 well in Tanzania\u2019s Kilosa Kilombero license will likely happen in 2019 following the signing of a Memorandum of Understanding between Swala Oil and Gas, the Tanzania Petroleum Development Corporation and the Tanzania Wildlife Management Authority that will ensure that the explorer receives, in a\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=4774"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4774\/revisions"}],"predecessor-version":[{"id":4776,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4774\/revisions\/4776"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/1973"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}