{"id":5843,"date":"2017-04-04T10:18:14","date_gmt":"2017-04-04T10:18:14","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5843"},"modified":"2017-04-05T08:13:03","modified_gmt":"2017-04-05T08:13:03","slug":"swala-oil-gas-issues-otto-energy-with-notice-of-withdrawal-in-tanzania","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-issues-otto-energy-with-notice-of-withdrawal-in-tanzania\/","title":{"rendered":"Swala Oil &#038; Gas Issues Otto Energy With Notice Of Withdrawal in Tanzania"},"content":{"rendered":"<p>Swala Oil &amp; 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.<\/p>\n<p>Swala Oil &amp; Gas accuses Otto of failing to fulfill its obligations under the JOA and to pay the sums it owed in order to remain on the Kilosa-Kilombero licence.<\/p>\n<p>\u201cNotwithstanding Swala&#8217;s efforts during 2016, Otto has steadfastly refused to fulfill its obligations under the JOA and to pay the sums it owed in order to remain on the Kilosa-Kilombero licence,\u201d says Swala CEO Dr. David Mestres Ridge.<\/p>\n<p>Otto\u2019s Participating Interest is to be apportioned between the remaining parties to the JOA not in default in proportion to their current Participating Interests. As the other co-venturer, Tata Petrodyne Limited, remains in default the new Participating Interests effective from the 26 th March 2017 are:<\/p>\n<ul>\n<li>Swala Oil &amp; Gas (Tanzania) plc 75% and Operator<\/li>\n<li>Tata Petrodyne Limited 25%<\/li>\n<\/ul>\n<p>Swala adds that in accordance with the provisions of the JOA Otto remains liable for the costs of transferring its Participating Interest and for its Participating Interest share of the Kito-1 exploration drilling programme (estimated at US$5.5 million net to Otto), together with accrued defaults of US$0.4 million.<\/p>\n<p>Kito well is scheduled for drilling in 3Q 2017, targeting best contingent resources net to Swala of a combined 110mmbbls over two distinct horizons.<\/p>\n<p>\u201cRegrettably, but in the best interests of the Joint Venture and to ensure the successful drilling programme scheduled for 2017, Swala was forced to exercise its option to require Otto to withdraw from the JOA and the PSA on the 26th March 2017,\u201d he adds.<\/p>\n<p>On the 28<sup>th<\/sup> March 2017, Otto issued Swala with a Dispute Notice, under which a Dispute Resolution mechanism that starts with a meeting of Senior Executives is invoked.<\/p>\n<p>Otto Energy in a rejoinder has accused the operator in issues relating to:<\/p>\n<ul>\n<li>handling of joint venture funds;<\/li>\n<li>position as Operator under the JOA following SOGTP\u2019s failure to satisfy the joint venture that it is not insolvent; and<\/li>\n<li>exclusion of Otto Tanzania and Tata Petrodyne Limited from an operating committee meeting, and purporting to pass resolutions at that meeting affecting the non-operating parties<\/li>\n<\/ul>\n<p>Swala says it considers the content of the Dispute Notice to be inapplicable and premature under the JOA, and shall not engage in further public discussion of this matter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Swala Oil &amp; 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 &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-issues-otto-energy-with-notice-of-withdrawal-in-tanzania\/\" 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":[6039,1327,5884,1940,5914,2466,4193,5913],"class_list":["post-5843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-dispute-notice","tag-kilosa-kilombero","tag-kito-1","tag-otto-energy","tag-swala-oil-gas","tag-tanzania","tag-tata-petrodyne","tag-withdrawal","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-1wf","jetpack-related-posts":[{"id":6015,"url":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-swala-oil-and-gas-agree-on-tanzania-disputes\/","url_meta":{"origin":5843,"position":0},"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 &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\/kilosa-kilombero.png?fit=337%2C329&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5740,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-granted-extension-of-tanzanias-kilosa-kilombero-licence\/","url_meta":{"origin":5843,"position":1},"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":7920,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-tata-petrodyne-limited-partnership-ends-in-tanzanias-kilosa-kilombero-licence\/","url_meta":{"origin":5843,"position":2},"title":"SWALA OIL &#038; GAS, TATA PETRODYNE LIMITED PARTNERSHIP ENDS IN TANZANIA&#8217;S KILOSA-KILOMBERO LICENCE","author":"","date":"January 22, 2020","format":false,"excerpt":"Swala Oil & Gas (Tanzania) plc in its December announcement said it had exercised its option under the Kilosa-Kilombero Joint Operating Agreement to require Tata Petrodyne Limited to withdraw from the JOA and the Kilosa-Kilombero Production Sharing Agreement . Folllowing the withdrawal Swala\u2019s Participating Interest increased from 75% to 100%,\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":[]},{"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":5843,"position":3},"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":5843,"position":4},"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":6387,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-energy-pay-otto-energy-800000-tanzanias-pangani-settlement-agreement\/","url_meta":{"origin":5843,"position":5},"title":"Swala Energy to pay Otto Energy $800,000 in Tanzania\u2019s Pangani Settlement Agreement","author":"","date":"October 10, 2017","format":false,"excerpt":"The Federal Court of Australia has confirmed Swala\u2019s obligation to pay Otto Energy (Tanzania) Pty Ltd the sum of $800,000 agreed under the Pangani Settlement Agreement in May 2017 Under the settlement of the claims and counter-claims concerning the Pangani Licence Swala agreed to pay to Otto a net sum\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\/2017\/10\/swala-Tanzania-seismic-map.png?fit=264%2C375&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\/5843","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=5843"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5843\/revisions"}],"predecessor-version":[{"id":5849,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5843\/revisions\/5849"}],"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=5843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=5843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=5843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}