Is Swala Oil and Gas Driving Hard Towards 2020
If Swala was a person, its nickname would be “The Survivor” for its ability to sustain itself during uncertain market conditions and remain active in Tanzania despite the global industry’s crash from 2014 to 2017.
Swala Oil and Gas (Tanzania) is another operator with drilling plan in Tanzania. We have been watching Swala’s development in Tanzania for almost five years now. And here we bring to you its Tanzanian projects. But before we go too far, let’s give you the company background, first.
Swala Oil and Gas (Tanzania) is an East African company focused on oil and gas exploration in the region. Swala was one of the early movers in Tanzania that took advantage of unexplored onshore oil blocks in the region.
Swala owns 75% interest of the Kilosa-Kilombero license. At kilosa-Kilombero, Swala has identified a prospect called Kito.
Read also: Is Aminex Getting Ready To Supply the Much-Needed Gas In Tanzania
Kito has a lot of similarities with the Lokichar Basin in Kenya where Tullow has discovered massive oil reserves. Swala is committed to drilling one well in the Kilombero-Kilosa license in Morogoro region.
The drilling project of Kito-1 well has been frequently postponed. Originally planned for 2016, after the delay in obtaining permit, it was postponed to 2017. And last year, the drilling programs were postponed to Q4 2019.
In fact, Swala is keen on taking advantage of the economic developments happening in the country that drive gas demand growth in Tanzania.
In February 2018, at the company’s annual general meeting presentation, Swala’s Chief Executive Officer (CEO), David Mestres Ridge, says:
“Continued economic growth requires growth in delivered gas volumes and Swala is aiming to play a role in that continued economic development.”
What was Expected of Swala in 2019
As you can see in the image below, 2019 was supposed to be a busy year for Swala Oil and Gas (Tanzania) PLC and it is expected to see that the drilling of Kito-1 well starts in 4Q 2019.
2019 Swala’s work program
Source: Swala company’s website
What the Future Holds for Swala
Our analysis is that, step by step, day by day, Swala is moving closer to the drilling event and becoming another gas producer in Tanzania meeting the ever-growing energy demand in the region.
We hope to witness Swala Oil and Gas (Tanzania) PLC announce the drilling programs of Kito-1 well as the company continues to remain active in Tanzania despite the global oil and gas industry downturn. Year 2020 could be the drilling year of the long awaited Kito-1 drilling project.
