Orca Extends Tanzanian Deal Deadline

Canadian firm Orca Exploration Group said May 14 that it has agreed to an additional extension of the date, by which it will achieve key stages in the divestment of a 40% interest in its Tanzania gas production business to local firm Swala Oil & Gas for up to $130mn, from May 11 2018 to June 29 2018.

It said there are no assurances given that one or more of the transactions will be completed then, or that they will be completed on the terms previously disclosed.

The deal was first officially announced January 2  and involves the Songo Songo gas field, Tanzania's first to enter production over a decade ago.  However in February the Tanzanian government intervened in the sale process, and targets for its completion have slipped since.  In April, Orca agreed to defer the key stages completion deadline until May 11 2018 (from March 28); this is now deferred until late June.