Swala extends Tanzania licence
DODOMA, August 31, 2015 – Australian exploration and production company Swala Energy announced Monday that it had been granted a licence extension by Tanzania’s Ministry of Energy and Mining for the Kilosa-Kilombero and Pangani developments.
Under the extension, Swala’s deadline for the drilling of exploration wells in both licences will be moved back by one year to February 20, 2017. As a result, the operator’s initial four-year exploration programme has been cut down to three years.
Swala holds a 50-percent interest in both developments through its local subsidiary Swala Oil and Gas, along with its partner Australian company Otto Energy, which holds the remaining share.
On the same day, Swala also confirmed that it had officially exited the Zambian market. Swala’s local subsidiary and its interest in block 44 will be transferred to local shareholders. The company stated in a press release that the move is intended to reduce costs and allow it to “continue to focus on its core areas of East Africa.”