Dar es Salaam, Tanzania, Nov. 2, 2015—IFC,
a member of the World Bank Group, is providing a $60 million loan to PanAfrican
Energy Tanzania Limited to help develop Tanzania’s offshore natural gas
reserves as a means to provide reliable, low-cost electricity in the country
that suffers frequent power shortages.
PanAfrican Energy Tanzania Limited is
a wholly-owned operating subsidiary of Orca Exploration Group Inc. ("Orca").
IFC’s financing will be used to fund the development of the Songo Songo
gas field, located about 15 km from the Tanzanian mainland and 200 km south
of the commercial capital, Dar es Salaam.
“This investment enables Orca to undertake
urgently needed development of the Songo Songo field and safeguards Songo
Songo’s future as an important part of Tanzania’s energy security,”
said W. David Lyons, chairman and chief executive officer of Orca.
“The Songo Songo field is Tanzania’s
most important source of proven natural gas production, and is the largest
supplier of energy to the Dar es Salaam region” said Lance Crist, IFC
Global Head of Natural Resources. “Through this investment, IFC is working
to help to alleviate electricity shortages in Tanzania, which are an impediment
to the country’s continued economic growth and development.”
Only 38 percent of Tanzania is electrified,
with demand for electricity growing nearly 15 percent per year. Developing
natural gas reserves for gas-to-power projects will help the country diversify
its power supply which is currently heavily reliant on hydropower facilities,
which can be unreliable during droughts.
According to the Tanzania Private Sector
Foundation, access to reliable electricity is the top barrier to doing
business in Tanzania.
About Orca Exploration Inc.
Orca is an international public company
engaged in natural gas exploration, development and supply in Tanzania
through the wholly-owned subsidiary PanAfrican Energy Tanzania Limited,
as well as oil and gas appraisal in Italy. Orca trades on the TSX Venture
Exchange under the trading symbols ORC.A and ORC.B.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org