{"id":5289,"date":"2016-10-14T08:14:22","date_gmt":"2016-10-14T08:14:22","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5289"},"modified":"2017-01-24T16:32:54","modified_gmt":"2017-01-24T16:32:54","slug":"swala-energy-pushes-tanzanias-kito-1-drilling-pushed-to-2017","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-pushes-tanzanias-kito-1-drilling-pushed-to-2017\/","title":{"rendered":"Swala Energy Pushes Tanzania&#8217;s Kito 1 Drilling Pushed to 2017"},"content":{"rendered":"<p>Swala Oil &amp; 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.<\/p>\n<p>Despite planning for the well proceeded within time and within budget through to the end of July 2016 the Joint Venture says it has missed the weather window that would have allowed it to drill safely in 2016.<\/p>\n<p>Going forward the Company says it will now seek a licence extension to allow drilling in 2017.<\/p>\n<p>Earlier OilNewsKenya had <a href=\"http:\/\/bit.ly\/2e6iQBQ\">reported<\/a> the drilling had been in doubt following a corporate presentation by JV partner Otto Energy in September and was likely to be pushed to Q4 of 2017 from <a href=\"http:\/\/bit.ly\/2atlHCS\">Q3 of 2016<\/a>.<\/p>\n<p>A JV is also embroiled in dispute due to:<\/p>\n<ul>\n<li>defaults in relation to non-payment by SOGTP of cash calls and associated interest accrued under the JOAs;<\/li>\n<li>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<\/ul>\n<p>Otto has also been calling for the <a href=\"http:\/\/bit.ly\/2dOBaBT\">removal of SOGTP as Operator<\/a> of the Kilosa-Kilombero licence area following SOGTP\u2019s failure to satisfy the joint venture partners and claims that it is not insolvent.<\/p>\n<p>Another dispute has been ongoing since May 2016 when Swala Energy Limited said it has been\u00a0<a href=\"http:\/\/bit.ly\/2alpJOw\">served notice<\/a>\u00a0by 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<p>The Kito-1 prospect was set to drill at the Kilosa Kilombero license in September 2016 with the contract\u00a0<a href=\"http:\/\/ow.ly\/105Y3H\">awarded<\/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<p>According to Swala Energy CEO Dr. David Mestres Ridge delays imposed by the timing of the necessary permits is the only reason behind the postponement.<\/p>\n<p>&#8220;We are disappointed that events caused us to miss the weather window within which we could have drilled the Kito-1 well but all parties agreed that health and safety considerations were paramount in deciding to postpone the well to 2017. We look forward to securing the licence extension that will allow Swala to test this promising prospect,&#8221; he says.<\/p>\n<p>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 &amp; Gas Limited, (Vegas) and Motor Oil Hellas SA (MOH).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Swala Oil &amp; 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 &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-pushes-tanzanias-kito-1-drilling-pushed-to-2017\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":4536,"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":[3773,4190,3479,1337,4603,4601,1940,2447,2466,4193,4602],"class_list":["post-5289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-politics","category-top-news","tag-awt-international","tag-dr-david-mestres-ridge","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\/2016\/03\/Kito-Prospect-Map.png?fit=899%2C529&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1nj","jetpack-related-posts":[{"id":5740,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-granted-extension-of-tanzanias-kilosa-kilombero-licence\/","url_meta":{"origin":5289,"position":0},"title":"Swala Oil &#038; Gas Granted Extension Of Tanzania&#8217;s  Kilosa-Kilombero Licence","author":"","date":"March 7, 2017","format":false,"excerpt":"Swala Oil & Gas (Tanzania) plc has announced that it has been awarded an extension to the Kilosa-Kilombero licence by the Ministry of Energy and Minerals. This extension runs to the 20th February 2018 and is to be deducted from the First Extension Period (as that is defined in the\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":"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":7174,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-lifts-force-majeure-kilosa-kilombero\/","url_meta":{"origin":5289,"position":1},"title":"Swala Lifts Force Majeure On Kilosa-Kilombero","author":"","date":"September 17, 2018","format":false,"excerpt":"Swala Oil & Gas (Tanzania) plc has lifted the Force Majeure over the Kilosa-Kilombero licence announced to the market on the 23rd April 2018. According to Swala the Company has collaborated closely with the Tanzania Petroleum Development Corporation since April towards attaining the necessary permits for drilling the Kito 1\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\/2018\/08\/Swala-Tanzania.png?fit=484%2C352&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":5289,"position":2},"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":5712,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-hints-12-month-license-extension-in-tanzanias-kilosa-kilombero\/","url_meta":{"origin":5289,"position":3},"title":"Swala Oil &#038; 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 &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\/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":5843,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-issues-otto-energy-with-notice-of-withdrawal-in-tanzania\/","url_meta":{"origin":5289,"position":4},"title":"Swala Oil &#038; Gas Issues Otto Energy With Notice Of Withdrawal in Tanzania","author":"","date":"April 4, 2017","format":false,"excerpt":"Swala Oil & Gas (Tanzania) plc \u00a0has advised that it has exercised its option under the Kilosa-Kilombero Joint Operating Agreement (JOA) to require Otto Energy (Tanzania) Pty Ltd \u00a0to withdraw from the JOA and the Kilosa-Kilombero Production Sharing Agreement. Swala Oil & Gas accuses Otto of failing to fulfill its\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\/2014\/10\/kilosa-kilombero.png?fit=337%2C329&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4534,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energys-kito-prospect-on-schedule-for-drilling-in-3rd-quarter-2016\/","url_meta":{"origin":5289,"position":5},"title":"Swala Energy\u2019s Kito Prospect on Schedule for Drilling in 3rd Quarter 2016","author":"","date":"March 30, 2016","format":false,"excerpt":"Swala Energy and Tata Petrodyne\u00a0 have said all is set to drill at the Kilosa Kilombero license in Q3 2016 with the latest feasibility study showing the majority of roads and bridges are suitable to move a rig. According to Swala Energy two bridges are likely to be bypassed as\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-propsect2D-image.png?fit=418%2C477&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\/5289","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=5289"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5289\/revisions"}],"predecessor-version":[{"id":5290,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5289\/revisions\/5290"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/4536"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=5289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=5289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=5289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}