{"id":5908,"date":"2017-05-04T08:51:57","date_gmt":"2017-05-04T08:51:57","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5908"},"modified":"2017-05-04T08:51:57","modified_gmt":"2017-05-04T08:51:57","slug":"otto-energy-doubtful-of-kito-1-drilling-until-disputes-are-resolved","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/otto-energy-doubtful-of-kito-1-drilling-until-disputes-are-resolved\/","title":{"rendered":"Otto Energy Doubtful of Kito-1 Drilling Until Disputes Are Resolved"},"content":{"rendered":"

Joint venture partner in the Kilosa-Kilombero license Australian explorer Otto Energy has poured cold water on the drilling of Kito-1 well until outstanding disputes with Operator, Swala Oil & Gas (Tanzania) plc (SOGT) \u00a0are resolved in its latest quarterly report.<\/p>\n

\u201cForward Plan Until the outstanding joint venture disputes<\/a> are resolved, Otto does not see that the joint venture can progress drilling planning with confidence,\u201d Otto Energy says in the report.<\/p>\n

According to Otto the disputes which range from issues under the relevant joint operating agreements, including SOGT\u2019s handling of joint venture funds, SOGT\u2019s position as operator, SOGT\u2019s notice purporting to require Otto to withdraw from the Kilosa-Kilombero JOA and SOGT attempt to cash call Otto for the entire 2017 work program remain a big hindrance.<\/p>\n

Otto maintains that SOGT was entitled to take such actions and has issued further dispute notices in respect of the same.<\/p>\n

\u201cOtto intends to vigorously defend its position via the dispute resolution provisions (including both mediation and\/or arbitration mechanism) provided for under the Kilosa-Kilombero JOA.\u201d<\/p>\n

The joint venture is currently operating on a 12 month extension<\/a> to February 2018 with the ministry of energy having included a caveat that the contractors provide financial guarantees ($6 million) covering the minimum well commitment.<\/p>\n

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

The JV plans to drill the Kito-1 prospect in the Kilosa-Kilombero valley in late 2017 and the operator has been working with the Tanzanian Petroleum Development Corporation to secure all necessary permits and consents to progress the drilling programme.<\/p>\n

There are four joint venture partners in the block with 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","protected":false},"excerpt":{"rendered":"

Joint venture partner in the Kilosa-Kilombero license Australian explorer Otto Energy has poured cold water on the drilling of Kito-1 well until outstanding disputes with Operator, Swala Oil & Gas … 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":[1327,5884,4603,4601,1940,5914,2481,4193,4602],"class_list":["post-5908","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-kilosa-kilombero","tag-kito-1","tag-motor-oil-hellas-sa","tag-mv-upstream","tag-otto-energy","tag-swala-oil-gas","tag-tanzanian-petroleum-development-corporation","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\/10\/kilosa-kilombero.png?fit=337%2C329&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1xi","jetpack-related-posts":[{"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":5908,"position":0},"title":"Otto Energy pushes to Remove Swala Energy as Operator in Tanzania’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 "Oil Politics"","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":5153,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzanias-kito-prospect-drilling-in-doubt-as-jv-dispute-rages\/","url_meta":{"origin":5908,"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":5740,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-granted-extension-of-tanzanias-kilosa-kilombero-licence\/","url_meta":{"origin":5908,"position":2},"title":"Swala Oil & Gas Granted Extension Of Tanzania’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. 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