Tanzania: Otto farms down Kilosa-Kilombero

Australia’s Otto Energy has farmed out a 25% stake in the onshore Kilosa-Kilombero licence to MV Upstream Tanzania, a joint venture between Greek companies Vegas Oil & Gas and Motor Oil Hellas. MV Upstream will pay Otto $2.3m and cover Otto’s share of costs up to $2m in the Kito-1 well, which is expected to spud in H2 this year. In the event of a discovery, MV Upstream will also carry Otto’s costs for an appraisal well up to $1m.