Swala Energy set to exit Zambia

(Agence Ecofin) - Swala Energy an Australia-based company focused on the exploration of hydrocarbons in sub-Saharan Africa has declared that, following an analysis of its assets and operations and as part of its unending cost reduction exercise, it has decided to withdraw from Zambia so as to continue to focus on its core areas of East Africa.   Enery-pedia reports In order to facilitate this action it has entered an agreement to relinquish control of Swala Energy (Zambia) to local Zambian shareholders. 

On completion of the transfer of control, Swala shall be the beneficial owner of less than 1% of Swala Zambia and will therefore have effectively renounced its interest and control of the Block 44 license in Zambia.   According to Dr. David Mestres Ridge, Swala’s CEO, said: “Swala has taken this step as part of a strategic decision to exit Zambia and to focus its resources and activities in its other highly prospective core areas of East Africa.  By transferring control of the company to local shareholders we are able to exit Zambia in a way that remains constructive and provides the local shareholders with a foothold in the early stages of the oil exploration industry in their own country. We wish them every success in their endeavours.

Under the terms of the agreement, the only Swala director on the board of Swala Zambia will resign with immediately effect upon change of control and Swala Zambia will have a change of name.