Operations at Tanzania’s Songo Songo natural gas field face uncertainty as the deadline for the expiry of the field’s development licence approaches on October 10.
Orca Energy Group has warned that its subsidiary, PanAfrican Energy Tanzania (PAET), may cease operating the field if the proposed sale of its Tanzanian business is not completed before the licence expires.
The proposed transaction would transfer PAET to Taifa Gas Tanzania and Amber Energy Investment. Taifa Gas would acquire 49 percent of the parent company while Amber Energy would hold 51 percent.
The transaction remains subject to regulatory approvals and other closing conditions.
PAET has notified customers, the Tanzania Petroleum Development Corporation (TPDC) and relevant authorities about the uncertainty surrounding the timing of the transaction.
If the sale is completed, operations are expected to continue under the new ownership, subject to applicable regulatory arrangements. If it is not completed in time, PAET could stop operating the field and associated infrastructure after the licence expires.
Songo Songo is strategically important to Tanzania’s energy system because its gas supplies power-generation facilities and industrial customers.
The field began supplying gas to Dar es Salaam in 2004 and has since become an important part of the country’s domestic energy infrastructure.
Orca has said it remains committed to supporting an orderly transition that maintains continuity of gas supply.
The immediate priority is therefore to resolve the outstanding approvals and establish a clear operating arrangement before the October 10 deadline, particularly for power producers and industrial customers that depend on the field’s gas supply.
