Swala Oil and Gas (Swala) maintains that it is in full compliance with all the country’s laws and its operations and transactions are transparent and in accordance to the country law.
The statement is in response to Tanzania Petroleum Development Corporation (TPDC) aired concerns concerning the transaction between Swala and Orca Exploration Group Inc (Orca).
In the transaction, Swala is seeking to buy 40% shares of Pan African Energy Mauritius (PAEM) and according to Swala, as of December 29th last year, it had already closed the deal securing bought 7.9% shares for $17 million.
Now, TPDC, the National Oil Company under the Ministry of Energy and Minerals, says Swala did not contact them about the share sale and as such, violated the country’s laws.
However, Swala insists it has been reaching out to TPDC for the last 6 months but has not received any response.
In the interim, Swala continued to meet and deliberate with other government authorities including the Capital Markets and Securities Authority (CMSA), the Tanzania Revenue Authority (TRA) and the Fair Competition Commission (FCC).
Swala is seeking to place $50 million bond with the Dar es Salaam Stock Exchange (DSE) and already the bond has attracted significant interest in and around the country.
“But now the TPDC comments create uncertainty among local investors that we are in constant engagement with,” said the company’s Chairman Mr. Abdullah Mwinyi.
“The transaction is fully compliant with all applicable laws and it complements the government efforts to increase local participation in the oil and gas sector,” he added.
“We welcome TPDC to seat with as to clear all misunderstandings and to regain investor confidence…the transaction is in line with the country’s industrialization policy and empowers local investors to engage in the energy sector,” he said.
Speaking at a press conference over a live Dr. David Mestres Ridge seconded the Chairman and also encouraged TPDC to meet with them.
“Swala has engaged all key stakeholders and also reached out to TPDC…all dealings are very transparent and even information pertaining the transaction is available for all to see in our website,” he said.
“We want to make sure the transaction is fully understood by all parties concerned and we are working with the stakeholders as our second mezzanine bond is progressed,” he added.
Dr. Ridge expressed his disappointment with the TPDC statements and described them as ‘unhelpful to the development of local investment and their participation in international projects.
“The statements also deter our efforts in the development of the local bond and equity markets but what is important is that all parties understand the transaction to be transparent and lawful,” he went on to say.
The CEO stressed that Swala continues to reach out to TPDC and is confident that the mix-up will be clarified and resolved amicably.
and has written documents to prove it. welcomes TPDC to meet and resolve the mis