Tata follows Modi lead in Tanzania

Vol 19, PW 22 (14 Jul 16) News in Brief
     

Narendra Modi is not the only one extending lines of credit to Tanzania.

Indian explorer Tata Petrodyne is also holding out the hand of friendship to its Australian consortium partner Swala Energy at their Kilosa Kilombero licence in southeast Tanzania. Near bankrupt Swala has less than $1m in cash on its books raising doubts about the future of the planned wildcat Kito-1 exploration well the consortium of Tata (25%), Swala (25%) and fellow Australian explorer Otto Energy (50%) were planning to spud in September this year.

To the rescue has come Tata Petrodyne. According to a company source Tata has agreed to 'carry' Swala for its 25% share of the $10m cost of drilling Kito-1.

"Swala has no money," we hear. "This will give it some breathing space and minimise its exposure for the time being.

" Well Kito-1 will be drilled to between 1000 and 1200 metres over 21 days before the Kilosa license runs out on February 20, 2017. During his visit to Tanzania on July 9 and 10 Modi extended a $92m line of credit to Tanzania.