Orca Energy Group Inc. has announced a final agreement to sell its operations in Tanzania, marking its withdrawal from the market after more than two decades. The company explained that continuing business in the country would require substantial financial reserves to meet capital expenditures and other obligations, a burden it deemed unsustainable.
In its April 13, 2026 statement, Orca declared: “Developing gas projects would demand significant capital and financial guarantees that are not currently available. To safeguard the interests of our shareholders, we have taken the strategic decision to exit.”
The agreement involves the sale of all shares in PAE PanAfrican Energy Corporation (PAEM), Orca’s Mauritius-registered subsidiary, to new buyers. Under the deal, Taifa Gas Tanzania Limited will acquire 49 percent of PAEM, while Amber Energy Investment L.L.C‑FZ will take 51 percent.
Orca’s board emphasized that the decision was also influenced by uncertainties surrounding the Songo Songo development license and the production-sharing agreement.
“Legal and technical requirements have posed significant challenges. Regulatory risks have added financial pressure, and therefore we considered it prudent to transfer the assets to new investors,” the statement read.
The sale transfers ownership of the Songo Songo gas assets to a new consortium led by Taifa Gas Tanzania Limited, a leading player in the country’s gas sector. This move is expected to ensure continuity of operations and further development of the project, while strengthening energy security and expanding domestic gas supply.
Orca underscored that its withdrawal is part of a long-term strategy to preserve capital for shareholder dividends and to realize value from its Tanzanian assets.
“We are proud of our contribution to Tanzania’s gas sector for over twenty years. However, it is now time to allow new investors to carry the project forward with a fresh perspective,” the company concluded.
Orca Energy Group Inc. officially entered Tanzania’s energy sector in 2004, taking on the responsibility of developing and operating the Songo Songo natural gas project off the coast of Lindi.
As the country’s first commercial natural gas venture, the project was designed to reduce dependence on imported fuel by generating electricity and supplying gas to industries and households.
For more than twenty years, Orca has been closely linked to Tanzania’s natural gas production, playing a pivotal role in strengthening the power sector and driving industrial growth.
