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Swala, Tullow and Cepsa settle Block 12B dispute

19th December 2014

Swala Energy has reached an agreement with Tullow Oil Kenya and Cepsa Kenya, concerning equity distribution under the JOA for Block 12B

Swala Energy has reached an agreement with Tullow Oil Kenya and Cepsa Kenya, concerning equity distribution under the JOA for Block 12B
Swala has also agreed with Cepsa to terminate its arbitration proceedings against Cepsa in respect of the block

Swala Energy has reached an agreement with Tullow Oil Kenya and Cepsa Kenya, concerning equity distribution under the JOA for Block 12B.

Tullow will hold 50 per cent of the block (as operator) and Swala 50 per cent.

"We are pleased at the amicable resolution of the issues that arose in respect of Block 12B, which allows us to focus on the operational development of 12B ahead of a planned drilling campaign in 2015," said David Mestres Ridge, Swala’s CEO.

The transfer of equity back to Swala Kenya is conditional on Kenyan ministerial consent, which the parties shall now solicit.

Swala has also agreed with Cepsa to terminate its arbitration proceedings against Cepsa in respect of the block.

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