{"id":4889,"date":"2016-08-01T10:54:43","date_gmt":"2016-08-01T10:54:43","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4889"},"modified":"2017-01-24T20:38:12","modified_gmt":"2017-01-24T20:38:12","slug":"otto-energy-pushes-to-remove-swala-energy-as-operator-in-tanzanias-kilosa-kilombero-license","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-pushes-to-remove-swala-energy-as-operator-in-tanzanias-kilosa-kilombero-license\/","title":{"rendered":"Otto Energy pushes to Remove Swala Energy as Operator in Tanzania’s Kilosa-Kilombero License"},"content":{"rendered":"

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.<\/p>\n

According to Otto Energy its subsidiary has issued various notices to Swala Oil and Gas (Tanzania) plc (SOGTP), pursuant to the Pangani and Kilosa-Kilombero Joint Operating Agreements.<\/p>\n

These notices relate to:<\/p>\n

    \n
  1. defaults in relation to non-payment by SOGTP of cash calls and associated interest accrued under the JOAs;<\/li>\n
  2. claims by Otto Tanzania for payment of interest accruing under the JOAs as a result of SOGTP\u2019s defaults, amounting to approximately US$360,000; and<\/li>\n
  3. the removal of SOGTP as Operator of the Kilosa-Kilombero licence area following SOGTP’s failure to satisfy the joint venture partners that it is not insolvent.<\/li>\n<\/ol>\n

    According to Otto’s Managing Director, Matthew Allen the decision by Otto Tanzania to issue dispute notices, including a notice seeking the removal of SOGTP as Operator of the Kilosa-Kilombero licence, was not taken lightly.<\/p>\n

    ” Otto Tanzania is of the view that these steps are the most appropriate course of action to ensure that joint venture operations, including the drilling of the planned Kito-1 exploration well, are undertaken by a joint venture which has the financial and technical capability to ensure the efficient and safe completion of drilling,\u201d Allen said.<\/p>\n

    \"Kito<\/a><\/p>\n

    Allen has warned that the joint venture will be unable to progress the drilling of the Kito-1 well<\/a> in 2016 until the joint venture disputes are resolved.<\/p>\n

    \u201cOtto Tanzania remains committed to the drilling of Kito-1 and plans to work with Tanzania Petroleum Development Corporation, the Government of Tanzania and our remaining joint venture and farm-in partners to ascertain the best way forward.\u201d<\/p>\n

    The Kito-1 prospect is set to drill at the Kilosa Kilombero license in September 2016 with already\u00a0 Swala Energy having\u00a0awarded<\/a>\u00a0the Drill Support Team contract for the 2016 drilling campaign to the Tanzanian subsidiary of AWT International (Asia) Sdn Bhd, a Singapore-headquartered firm offering subsurface, subsea and surface facilities engineering services and contracting solutions to the oil and gas industry.<\/p>\n

    A feasibility study showed the majority of roads and bridges are suitable to move a rig as two bridges are likely to be bypassed as well as improvement of one river crossing near the site.<\/p>\n

    Another dispute has been ongoing since May 2016 when Swala Energy Limited said it has been served notice<\/a> 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 seeking to recover a gross amount of approximately US$1,000,000 plus alleged damages.<\/p>\n

    “The matters raised in these notices are unrelated to the current Federal Court proceedings brought by Otto Tanzania against Swala Energy Limited (In Administration), its directors and SOGTP.” Otto said in a statement.<\/p>\n

    The four joint venture partners in the two blocks currently have a 25 percent interest each. Among the partners include the\u00a0 Swala Energy (operator), Otto Energy, Tata Petrodyne, and MV Upstream a joint venture between Vegas Oil & Gas Limited, (Vegas) and Motor Oil Hellas SA (MOH).<\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    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 … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1664,"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":[7,11],"tags":[4732,4734,1327,4601,4079,1940,1966,4733,2447,2452,2466,4193,4602],"class_list":["post-4889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-politics","category-top-news","tag-vegas-and-motor-oil-hellas-sa-moh","tag-awt-international-asia-sdn-bhd","tag-kilosa-kilombero","tag-mv-upstream","tag-operator","tag-otto-energy","tag-pangani","tag-sogtp","tag-swala-energy","tag-swala-oil-and-gas-tanzania-plc","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\/08\/swala-tanzania-seismic-map.png?fit=264%2C375&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1gR","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":4889,"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 "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":5153,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzanias-kito-prospect-drilling-in-doubt-as-jv-dispute-rages\/","url_meta":{"origin":4889,"position":1},"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 "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\/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":4889,"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":4889,"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). The consent\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\/09\/swala-energy-ears.png?fit=329%2C474&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":6015,"url":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-swala-oil-and-gas-agree-on-tanzania-disputes\/","url_meta":{"origin":4889,"position":4},"title":"Otto Energy, Swala Oil And Gas Agree On Tanzania Disputes","author":"","date":"May 29, 2017","format":false,"excerpt":"Otto Energy and Swala Oil and Gas (Tanzania) Plc have announced that they have entered into settlement and other commercial arrangements in respect of the various claims and disputes concerning both the Pangani and Kilosa-Kilombero Licences, onshore Tanzania. Under the settlement of the claims and counter-claims concerning the Pangani Licence,\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\/kilosa-kilombero.png?fit=337%2C329&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1794,"url":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-requests-trading-halt-ahead-of-major-announcement\/","url_meta":{"origin":4889,"position":5},"title":"Otto Energy requests trading halt ahead of major announcement","author":"Samuel Kamau Mbote","date":"September 18, 2014","format":false,"excerpt":"The securities of Otto Energy Limited will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless the Australian Stock Exchange (ASX) decides otherwise, the securities will remain in Trading Halt Session State until the earlier of\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\/09\/otto-energy_final.jpg?fit=292%2C226&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4889","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=4889"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4889\/revisions"}],"predecessor-version":[{"id":4891,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4889\/revisions\/4891"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/1664"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}