Swala Energy has sold 25 per cent of its stake in Kenya’s Nyanza Block 12B, located in the port city of Kisumu, to Spanish explorer Cepsa
Although the worth of deal was not disclosed, the Australian company, with assets in Tanzania, said that Cepsa would pay for costs incurred for the first two wells are drilled, amounting to US$15mn. Tullow Oil is the operator of the oil block.
Swala Energy will retain a 25 per cent net working interest in Block 12B and Cepsa will own a 25 per cent working interest with Tullow Oil holding the remaining 50 per cent working interest, according to Business Daily.
The Block 12B is located in the Nyanza Rift, part of the East African Rift System (EARS), about 300km south of Tullow Oil’s Ngamia oil discovery.
David Mestres Ridge, CEO of Swala Energy, said that the new deal will help the company focus on growing its portfolio in East Africa.