Orca Exploration Gets $60 mn IFC Loan for Tanzania Operations

Orca Exploration has announced it has signed a $60 million loan agreement International Finance Corporation (IFC) for investment in its Tanzanian subsidiary.

The proceeds of the loan will be used to fund part of an estimated $120 million first phase of a Songo Songo main field development programme in Tanzania, Orca said Friday.

“The conclusion of the IFC financing is a significant achievement for Orca and an important endorsement of the Company's continuing commitment to Tanzania,” commented W. David Lyons, Orca Chairman and Chief Executive Officer. “It allows us to raise finance and manage risk in the face of a challenging business environment, and to undertake urgently needed development of the Songo Songo field.”

Since programme commencement, previously suspended production wells SS-5 and SS-9 have been successfully worked over and recompleted, and have been restored to full productive capacity estimated to be approx. 35 MMscfd per well, the company said, adding the offshore programme is intended to restore and expand field productive capacity from approx. 83 million standard cubic feet per day (MMscfd) prior to the programme to approx. 190 MMscfd on completion of the programme.

When completed, the field is expected to be capable of both filling the existing Songas infrastructure to capacity of approx. 102 MMscfd, as well as providing additional gas volumes to the newly commissioned National Natural Gas Infrastructure Project (NNGIP) as and when contracted.