Swala Energy Completes Tanzania Farm Out Deal With India's Tata

Swala Energy has finalised the farm out deal with India’s Tata Petrodyne (TPL) for the Kilosa-Kilombero and Pangani licences in Tanzania.

“The parties shall now proceed to payment of the reimbursable past costs of $5.7 million, due within five working days from completion, and to the transfer of licence working interest to TPL,” Swala Energy said Thursday.

Upon completion of the transaction, the equity in the licences shall be: Swala 25 percent; Tata Petrodyne 25 percent; Otto Energy 50 percent.

In June, Swala Oil and Gas (Tanzania) reached the farm out agreement with Tata Petrodyne (TPL), a subsidiary of the multinational Tata Sons Limited. TPL will free carry Swala Tanzania through the costs of the initial well on the Kilosa-Kilombero licence, up to a maximum of $2.5 million and will free carry Swala Tanzania through the costs of the initial well on the Pangani licence, up to a maximum of $2.125 million.