Swala Energy is seeking for intervention on a share return sold to Compañía Española de Petróleos S.A.U (CEPSA), Abu Dhabi firm over Kisumu oil exploration Block 12B which is being explored by Tullow oil Plc.In March 2014, CEPSA farmed into Block 12B in Kenya and acquired 25% equity interest which it is obliged to surrender back to Swala in accordance to the Farm-Out Agreement signed between CEPSA and Swala.

In June 2014, Swala announced a joint venture and CEPSA committed to pay KES 660 million ($7.5 million) should it participate in the drilling of the first well in Kisumu. The agreement also stated that it was to add another KES 660 million if it was to participate in the second well drilling.

Swala Energy and Tullow Oil were to proceed drilling in the third and fourth years in accordance to the production sharing contract (PSC).

With Tullow’s first oil discovery in Northern Kenya in 2012, oil drilling in Kenya has greatly risen spreading to the counties.

 

 

 

Leave a Reply