Tata Petrodyne Ltd. (TPL) will farm in to the Pangani and Kilosa-Kilombero licenses in Tanzania under an agreement with Swala Oil and Gas (Tanzania) Plc, the parent company, Swala Energy Ltd., said June 1.

Swala Energy said it will carry out drilling work in the area, shown to be highly prospective through seismic work.

Government approvals are needed for transfer of interest, the company said. TPL will pay Swala Tanzania US$5.7 million for a 25% equity interest in the Kilosa-Kilombero license and a 25% equity interest in the Pangani license.

Swala Tanzania’s initial Kilosa-Kilombero and Pangani well costs will be carried by TPL.

Otto Energy (Tanzania) Pty Ltd. will have 50% interest in each license.

Tata Petrodyne is a subsidiary of the multinational holding company Tata Sons Ltd.