{"id":5623,"date":"2017-01-25T18:35:39","date_gmt":"2017-01-25T18:35:39","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5623"},"modified":"2017-01-25T18:42:17","modified_gmt":"2017-01-25T18:42:17","slug":"update-swala-energy-exits-kenyas-block-12b","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/update-swala-energy-exits-kenyas-block-12b\/","title":{"rendered":"Update: Swala Energy Exits Kenya\u2019s Block 12B"},"content":{"rendered":"

Oilnews Kenya can confirm that joint venture partner in Kenya\u2019s block 12B Australia\u2019s Swala Energy has exited from the license as earlier reported<\/a>.<\/p>\n

According to communication from Tullow Oil the JV partner exited in October 2016 leaving the operator with 100 percent equity.<\/p>\n

\u201cIn line with the Joint Operating Agreement (JOA), Tullow Oil has 100% participating interest in Block 12B as from October 2016,\u201d Tullow Oil, Kenya BV communications manager Tim Tororey told OilNews Kenya.<\/p>\n

Although no reasons were provided investigations by OilNews over the same period as compiled by HQ advisory reveal that Swala Energy was either unable to secure any funding to continue its activities or realize its assets thus very likely unable to contribute to the fulfill the commitments as per the agreement with the operator.<\/p>\n

A statement of financial position over the period ending 24th<\/sup> June 2016 shows Swala Energy Kenya Limited had $2.3 million in loans of $16.5 million owed by the group against $0.1 million held by the group in various banks as per the time of the takeover by the administrator.<\/p>\n

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

Although the company had entered into an arrangement for a loan capped at $3 to fund activities in Kenya and to be repaid within 10 working days of a capital raising the administrator was of the view that the company was unlikely to raise any funds before 31st<\/sup> December.<\/p>\n

 <\/p>\n

Explaining the company\u2019s reasons for the financial difficulties the directors notes that the legal dispute<\/a> by Otto energy really diminished the chances to attract new investors or receive commitments from third parties to partake in transactions with the company.<\/p>\n

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

Swala\u2019s complex international corporate structure was also unattractive to new investors or to raise equity augmented by the dip in the global oil and gas sector.<\/p>\n

Trident Capital was shortlisted in late August 2016 as the preferred bidder for the acquisition of the company after the administrator advertised Swala Energy\u2019s sale in June attracting 31 companies. Details as to how far the transaction has proceeded are not available with the deed of company arrangement set to be executed by 31st<\/sup> December 2016.<\/p>\n

Swala and joint venture partners Otto Energy, Tata Petrodyne and MV Upstream are also at the risk of losing their Kilosa-Kilombero license in Tanzania with every indication they are likely to meet their commitment obligations following their ongoing dispute and court case in the Australian high court<\/p>\n","protected":false},"excerpt":{"rendered":"

Oilnews Kenya can confirm that joint venture partner in Kenya\u2019s block 12B Australia\u2019s Swala Energy has exited from the license as earlier reported. According to communication from Tullow Oil the … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1929,"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":[5788,5785,265,5787,4318,5783,1252,1329,5786,4601,1940,2447,2466,4193,5784,2571],"class_list":["post-5623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-administrator","tag-australian-high-court","tag-block-12b","tag-capital-raising","tag-directors","tag-exit","tag-kenya","tag-kilosa-kilombero-license","tag-legal-dispute","tag-mv-upstream","tag-otto-energy","tag-swala-energy","tag-tanzania","tag-tata-petrodyne","tag-trident-capital","tag-tullow-oil","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/swala-energy-1.jpg?fit=650%2C451&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1sH","jetpack-related-posts":[{"id":5542,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-exits-kenyas-block-12b\/","url_meta":{"origin":5623,"position":0},"title":"Swala Energy Exits Kenya\u2019s Block 12B","author":"","date":"January 10, 2017","format":false,"excerpt":"There is uncertainty on whether Australian firm Swala Energy which\u00a0held 50 percent equity in Kenya\u2019s block 12B has relinquished its share\u00a0with the Tullow Oil website indicating that the operator now holds 100 percent equity. Swala\u2019s Tanzania subsidiary that remains the only functioning website by the Australian explorer shows no Kenyan\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\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":6300,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-to-commence-acquisition-of-2d-seismic-in-kenyas-block-12a-12b\/","url_meta":{"origin":5623,"position":1},"title":"Tullow Oil to commence Acquisition of 2D Seismic in Kenya\u2019s Block 12A, 12B","author":"","date":"September 15, 2017","format":false,"excerpt":"Tullow Oil will in October commence acquisition of 2D seismic in two adjacent blocks it operates in Northern Kenya namely Block 12A and 12B OilNews Kenya has learnt. Tullow Oil which has 100 percent participating interest in Block 12B hopes to better understand several identified prospects ahead of drilling with\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\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":1844,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-seeks-arbitration-after-cepsa-withdrawal-from-kenyas-block-12b\/","url_meta":{"origin":5623,"position":2},"title":"Swala Energy seeks arbitration after CEPSA withdrawal from Kenya’s Block 12B","author":"Samuel Kamau Mbote","date":"September 29, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Swala Energy Limited advises that its wholly-owned subsidiary, Swala Energy (Kenya) Limited, has referred to arbitration a dispute with CEPSA Kenya Limited (\u201cCEPSA\u201d) in connection with CEPSA\u2019s withdrawal from Block 12B in Kenya. CEPSA farmed in to Block 12B in Kenya and acquired a 25% equity interest. Upon\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\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/04\/block-12b.jpg?fit=750%2C590&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":2204,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-drops-its-arbitral-claim-in-respect-of-block-12b-kenya\/","url_meta":{"origin":5623,"position":3},"title":"Swala Energy drops its arbitral claim in respect of Block 12B, Kenya","author":"Samuel Kamau Mbote","date":"December 19, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Swala Energy has said it has dropped its arbitration proceedings against CEPSA in respect to Block 12B pursuant to its announcement of the 10th November 2014. 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