(Ecofin Agency) - Orca Exploration Group Inc. has been granted a loan to finance part of its offshore development project, in Tanzania. The company entered into the $60 million loan agreement with the International Finance Corporation (IFC), a member of the World Bank Group.
“The conclusion of the IFC financing is a significant achievement for Orca and an important endorsement of the Company’s continuing commitment to Tanzania. 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,” W. David Lyons, Orca Chairman and CEO told Offshore Energy Today.
Proceeds of the loan is to be used to finance part of the $120 million first phase Songo-Songo Main field offshore development program being embarked upon presently, using the Paragon M826 jack-up drilling rig.
The offshore development program is to restore and increase field productive capacity from about 83 Mmscfdb before the programme to about 190 Mmscfd at the end of the program. On completion, the field is to be capable of both filling the current infrastructure to the capacity of about 102 Mmscfd, and also provide additional gas volumes to the newly commissioned National Natural Gas Infrastructure Project (NNGIP).
“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. 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,” Lance Crist, IFC Global Head of Natural Resources said.