Orca Energy’s PanAfrican Energy Tanzania may cease operating the Songo Songo gas field when its licence expires on 10 October 2026 if a planned sale to Taifa Gas and Amber Energy Investment does not complete and regulatory approvals are not secured.
Orca’s proposed sale transfers PAET via its Mauritian parent PAEM, with Taifa acquiring 49% and Amber 51%, but the deal requires Tanzanian competition and petroleum approvals and other conditions.
PAET recommended immediate familiarisation and asset mapping so responsibilities can be transferred quickly if the transaction misses the licence deadline.
PAET’s fixed operating assets will revert to TPDC on licence expiry or termination, affecting continuity of supply to power plants and industrial customers.
# What's happening Orca Energy Group says its indirect Tanzanian unit, PanAfrican Energy Tanzania (PAET), could stop operating the Songo Songo gas field on 10 October 2026 when its development licence and certain gas supply contracts expire. The company warned this outcome is possible if the sale of PAET to Taifa Gas Tanzania Limited and Amber Energy Investment L.L.C-FZ does not close before the licence deadline.
# Why the sale matters
# Immediate operational risk PAET has informed customers, the Tanzania Petroleum Development Corporation (TPDC), and regulators about two possible outcomes: the sale completes and operations continue under new owners, or PAET ceases operation after licence expiry and transition activities are coordinated with TPDC and regulators. To prepare for the second scenario, PAET advised immediate operational familiarisation and asset mapping to enable a prompt transfer of responsibilities if needed.
# Practical consequences for supply and assets Songo Songo supplies natural gas to domestic power plants and industries, including connections made in the early 2000s that brought gas to Dar es Salaam and the Ubungo power plant. If PAET stops operating after licence expiry, its fixed operating assets will become the property of TPDC under the licence and production sharing agreement. That legal change affects who controls field infrastructure and could influence how continuity of gas supply is managed during any transfer.
# Transaction timeline and offsets
# Project background Songo Songo is an offshore-onshore gas development about 15 km off the Tanzanian coast. PAET has operated the field since a production sharing agreement signed in 2001, with gas deliveries to Dar es Salaam starting in 2004. The field comprises eight wells tied to the Songas processing plant and the National Natural Gas Infrastructure processing facility operated by GASCO, a TPDC subsidiary.
When the sale was announced, Orca Chairman David Ross said the transaction aimed for an orderly transition of the asset into its next phase. Taifa Group Chairman Rostam Azizi described the deal as increasing Tanzanian participation in the project and called for investment frameworks to support local capacity and long-term investors.
# What to watch next
Tanzania’s $42 billion liquefied natural gas (LNG) project in Lindi has entered its final legal stage after completion of key negotiations with investors.
The East African Crude Oil Pipeline (EACOP) has reached 92.7 percent completion, with crude oil filling expected to begin in December ahead of Tanzania’s first export cargo from Tanga in February 2027.
The Tanzania Petroleum Development Corporation (TPDC) is expected to finalise the ownership structure of the Min LNG project by the end of September, paving the way for implementation over the following 18 months.
Mradi wa gesi asilia ya kimiminika (LNG) wenye thamani ya Dola bilioni 42 (zaidi ya Sh106 trilioni), unaotarajiwa kujengwa mkoani Lindi, umeingia hatua ya mwisho ya kisheria baada ya Serikali kukamilisha mazungumzo muhimu na wawekezaji.
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