PanAfrican Energy refutes share sale claim to Swala Oil and Gas

"We are not involved in any transaction and have breached no law in the country"

PanAfrican Energy refutes share sale claim to Swala Oil and Gas

"We are not involved in any transaction and have breached no law in the country"

27 February 2018 Tuesday 06:38
PanAfrican Energy refutes share  sale claim to Swala Oil and Gas

THE PanAfrican Energy Tanzania (PAET) has refuted claims by the Tanzania Petroleum Development Corporation (TPDC) that it was involved in a transaction with Swala Oil and Gas for the sale of shares to their firm or in the Songo Songo gas field.

PAET said it is not involved in any transaction and has breached no law in the country.

It said the transaction to which the acting Managing Director of TPDC has been referring was between Swala company and Orca Exploration Group Inc for the sale of shares in PAET’s parent company.

“The details of that transaction were published on the website of Swala and Orca in January this year,” said PAET in a statement.

The firm further said under the terms of a production sharing agreement (PSA) and a Gas Agreement dated October 11, 2001, the government of Tanzania and TPDC gave PAET both the obligations and the rights to explore, develop and produce gas at Songo Songo and that the firm and TPDC either together or independently were given the rights to market and sell that gas to third parties.

PAET said it has been selling gas to third parties since September 2004.

The firm also said the revenue obtained from the sales are shared between TPDC and PAET after both parties’ costs were deducted in accordance with the PSA.

“It is true that over the past 17 years, there has been contractual disputes between the government of Tanzania, TPDC and PAET but these have or are being managed in accordance with the contracts and no legal proceedings have ever been commenced,” the statement said adding that the biggest customers of TPDC and PAET was TANESCO.

According to the statement, TPDC and PAET owe Tanesco over $100million from the sales of Songo Songo gas.

Azania Post

Updated: 27.02.2018 10:53
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