Qn: The Tanzanian Petroleum Development Corporation terminated negotiations with Swala for the Eyasi licence for exploration. What is your response to this?
Ans: Swala is disappointed by what we see as the unreasonable termination after long discussions with TPDC. That termination meant Eyasi has remained unexplored for the past year.
We could by now have completed our seismic work. Swala is in discussion with a number of large companies interested in joining us in a new bid for this licence.
We look forward to the time when it is re-awarded, a prime opportunity for the Ministry of Energy and TPDC to demonstrate their stated commitment to the participation of citizens in the oil and gas industry.
Qn: Why is the Eyasi area of special interest to Swala?
Ans: Eyasi matters for two main reasons. Firstly, it lies within the East African Rift System and, as such, it has large hydrocarbon potential. Secondly, Swala is looking to grow firstly within this country, and thereby become a vehicle through which Tanzanian investors can participate in the development of our natural resources. Eyasi provides that additional portfolio growth that the development of the company requires.
SWE Price at posting:
9.0¢ Sentiment: None Disclosure: Held
