IFC boosts Songo Songo project with $60m loan to Orca

IFC boosts Songo Songo project with $60m loan to Orca

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ORCA Exploration, through its Tanzanian subsidiary PanAfrican Energy Tanzania, has entered into a loan agreement with The International Finance Corporation (IFC) for $60 million investment in the company’s operation. The fund will form part of the $120million that the company required for the Songo Songo main field development programme. The loan, which is guaranteed up to a tune of $30million convertible to shares by the parent company, will run for 10 years with seven years moratorium on capital repayment.
The project, offshore Songo Songo Island, will restore and expand field capacity from 83MMscfd to 190MMscfd. Gas produced will be processed at the existing Songas facility which has a capacity of 102MMscfd, while the excess production will be processed at the newly commissioned National Natural Gas Infrastructure Project (NNGIP).
The Songo Songo gas project is important to Tanzania’s power industry as it is the country’s largest supplier of natural gas. The completion of the project is expected to allow the country increase power generation from gas-fired plants as all of the gas produced are expected to be sold locally. The involvement of the IFC is also expected to boost the viability of the project and attraction to other financiers.

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