Dar es Salaam. In a significant shift for Tanzania’s energy sector, Orca Energy Group Inc. has agreed to divest its entire Tanzanian business, transferring control of the historic Songo Songo gas project to a consortium led by Taifa Gas Tanzania Limited and Amber Energy Investment L.L.C-FZ.
The agreement will see Taifa acquire a 49 percent stake and Amber take 51 percent of PAE PanAfrican Energy Corporation, Orca’s holding company for its Tanzanian assets. The transaction, priced at a nominal $10, marks the end of Orca’s long-standing involvement in the country’s natural gas industry.
Orca’s Board said the decision follows a lengthy review of operational risks, ongoing disputes, and uncertainty surrounding the extension of the Songo Songo development licence and production sharing agreement.
The company noted that continuing operations would require maintaining significant cash reserves to meet uncertain obligations, including potential tax liabilities, capital expenditures and litigation costs.
“The time is now right for an orderly transition of the asset into its next phase,” said Chairman David Ross, highlighting the company’s role in developing Tanzania’s gas sector and supporting power generation, industrial supply and workforce development.
The Songo Songo project, operated through PanAfrican Energy Tanzania Limited, represents Orca’s sole operating business.
However, the company stated that the assets have limited residual value in the near term, citing significant contingent liabilities and the structure of agreements under which fixed assets revert to the Tanzania Petroleum Development Corporation upon licence expiry, while geological data remains government property.
For Taifa, the deal represents a major step in expanding local participation in the extractive sector. Chairman Rostam Azizi described the transaction as “a pivotal moment for Tanzania,” emphasizing the importance of domestic ownership in strengthening industrial capacity and retaining economic value within the country.
The acquisition positions Taifa already a major player in liquefied petroleum gas as a central force in shaping the future of Tanzania’s natural gas industry, particularly the Songo Songo gas field.
Upon completion, Orca will fully exit the Tanzanian market and relinquish all ownership and obligations tied to the assets, including any outcomes related to licence negotiations or disputes with the government.
The transaction remains subject to regulatory approvals, including clearance from Tanzania’s Fair Competition Commission and the Minister responsible for petroleum, as well as approval from Orca shareholders and the TSX Venture Exchange.
