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.
About IFC
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
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