{"id":5740,"date":"2017-03-07T11:42:11","date_gmt":"2017-03-07T11:42:11","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5740"},"modified":"2017-03-07T11:42:11","modified_gmt":"2017-03-07T11:42:11","slug":"swala-oil-gas-granted-extension-of-tanzanias-kilosa-kilombero-licence","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-granted-extension-of-tanzanias-kilosa-kilombero-licence\/","title":{"rendered":"Swala Oil & Gas Granted Extension Of Tanzania’s Kilosa-Kilombero Licence"},"content":{"rendered":"

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 Production Sharing Agreement.<\/p>\n

TPDC has also reiterated its demand for bank guarantees from the co-venturers, earlier reported<\/a> by OilNews Kenya. The bank guarantees required by TPDC amount to $6 million to meet the minimum commitment cost of drilling an exploration well to 3,000m or basement. This amount can be drawn down as the exploration activity progresses. Swala\u2019s drilling costs of up to a maximum of $2.5 million are to be paid for by Tata Petrodyne Limited under the terms of the Farm-Out Agreement between the two dated October 2015.<\/p>\n

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

\u201cWe are delighted that the hard work that the Swala and TPDC teams carried out in late 2016 has resulted in MEM awarding this extension to drill the Kito-1 exploration well. TPDC have required the coventurers to make a tangible commitment to the development of this well, which is scheduled to be drilled in 3Q 2017. Swala is re-engaging the project team that progressed the Kito campaign in 2016 and will benefit from the work already carried out along with the long-lead items that are held by Swala in anticipation of a drilling campaign,\u201d said Swala CEO Dr. David Mestres Ridge.<\/p>\n

Meanwhile Swala has said that a default dispute<\/a> issued by its JV partner Otto Energy has been terminated. According to the operator its partner was time barred after failing to follow the arbitration route as prescribed by the Kilosa-Kilombero Joint Operating Agreement for a party wishing to resolve a dispute within the set timeframe of 60 days. Under the JOA arbitration is agreed to be the exclusive and final means to resolve disputes arising.<\/p>\n

Swala then points out that it has advised Otto that, under the terms of the JOA, Otto should have progressed the dispute resolution mechanism through to arbitration by the 27th September.<\/p>\n

\u201cSwala has always rejected the grounds on which Otto sought to base its claim. The fact that, over the past seven months, Otto has failed to progress the dispute resolution process set out in the JOA underlines Swala\u2019s position that this was a meritless claim. With the default lifted the Joint Venture can now progress the planning to drill the Kito-1 exploration well in 3Q 2017, and we shall advise the market of developments as that programme progresses,\u201d Ridge concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"

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 … 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":[7,11],"tags":[2771,3421,637,5915,1214,3479,5884,1940,5914,2466,2472,3266,2543],"class_list":["post-5740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-politics","category-top-news","tag-arbitration","tag-dispute","tag-drilling","tag-joa","tag-joint-operating-agreement","tag-kilosa-kilombero-licence","tag-kito-1","tag-otto-energy","tag-swala-oil-gas","tag-tanzania","tag-tanzania-petroleum-development-corporation","tag-tata-petrodyne-limited","tag-tpdc","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-1uA","jetpack-related-posts":[{"id":5712,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-hints-12-month-license-extension-in-tanzanias-kilosa-kilombero\/","url_meta":{"origin":5740,"position":0},"title":"Swala Oil & 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 "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\/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, 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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\/08\/swala-tanzania-seismic-map.png?fit=264%2C375&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":579,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-commits-to-pangani-kilosa-kilombero-2nd-year-exploration\/","url_meta":{"origin":5740,"position":2},"title":"Swala Energy commits to Tanzania Exploration","author":"Samuel Kamau Mbote","date":"February 24, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Swala Energy, through its 65% owned subsidiary\u00a0Swala Oil & Gas\u00a0(Tanzania)\u00a0says it has informed the\u00a0Tanzanian Petroleum Development Corporation\u00a0(\u201cTPDC')\u00a0that it has committed to entering the second 2-Year exploration phase of the Initial\u00a0Exploration Term in both its\u00a0Pangani\u00a0and\u00a0Kilosa-Kilombero Production Sharing Agreement ('PSA')\u00a0licence areas, together with its Joint Venture partner\u00a0Otto Energy (Tanzania), a\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\/02\/swala-tz.jpg?fit=768%2C454&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/swala-tz.jpg?fit=768%2C454&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/swala-tz.jpg?fit=768%2C454&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/02\/swala-tz.jpg?fit=768%2C454&ssl=1&resize=700%2C400 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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":10938,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-swala-oil-gas-receives-2-year-to-the-kilosa-kilombero-license\/","url_meta":{"origin":5740,"position":4},"title":"TANZANIA: Swala Oil & Gas Receives 2 Year to the Kilosa Kilombero License","author":"","date":"September 29, 2021","format":false,"excerpt":"Swala Oil & Gas (Tanzania)\u00a0 has advised that it has received an extension to the Kilosa-Kilombero licence from the Ministry of Energy in Tanzania. 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