{"id":8815,"date":"2020-08-11T16:58:47","date_gmt":"2020-08-11T16:58:47","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=8815"},"modified":"2020-08-11T17:40:52","modified_gmt":"2020-08-11T17:40:52","slug":"tanzania-orca-energy-provides-operational-update","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-orca-energy-provides-operational-update\/","title":{"rendered":"TANZANIA: Orca Energy Provides Operational Update"},"content":{"rendered":"

Orca has reported that on August 3, 2020 signed a contract with China Petroleum and Technology Development Company (CPTDC<\/strong>) for the design, supply, installation and commissioning of natural gas compressors within the Songas gas processing facility on Songo Songo Island. Orca says the compressors will work in harmony with the previously installed refrigeration to address declining reservoir pressure and ensure maximum production levels can be sustained, subject to demand, through to the end of the Production Sharing Agreement in 2026.\u00a0 The compressors are scheduled to be operational by the end of Q2 2022.<\/p>\n

The company reports\u00a0 Additional Gas sales averaged 50.6 million standard cubic feet a day (MMcfd<\/strong>) for Q2 2020 down from 56.6 MMcfd in Q2 2019 and 53.5 MMcfd for the six months ended June 30, 2020 (six months ended June 30, 2019: 59.5 MMcfd). Orca says gas sales were impacted by sustained and significant rainfalls that enabled the Tanzania Electricity Supply Company (TANESCO<\/strong>) to operate its hydro facilities at high utilization rates.\u00a0 Tanzania is now entering the dry season and gas demand is expected to increase for the remainder of the year.\u00a0 Despite the lower demand for gas from the power sector, TANESCO has continued to pay back its arrears during the first six months of the year.\u00a0 Orca continues to benefit from a strong balance sheet, with cash and short-term bonds of $106.1 million as at June 30, 2020.<\/p>\n

Further, Orca adds it is preparing for the workover of onshore well SS-10 in early 2021 with a decision on whether to conduct remedial work on two of the older onshore wells, SS-3 and SS-4 to be taken on completion of a major subsurface review of the Songo Songo gas field that will be finalized during Q4 2020.\u00a0 This review, which includes a re-build of the static and dynamic reservoir models, will enable the Company to assess whether the workover of SS-3 and SS-4, or the drilling of new infill wells will be preferable over the remainder of the license period.\u00a0 The review will also incorporate the latest trends in pressure measurements to allow a full re-assessment on the contingent and prospective resource potential and associated economics of drilling and developing the natural gas in the areas known as Songo Songo North and Songo Songo West.<\/p>\n

Nigel Friend, CEO of Orca commented:<\/strong><\/p>\n

\u201cDespite the challenging macro backdrop, we are very pleased with Orca\u2019s performance in the first six months of 2020.\u00a0 We are well placed to finance and deliver a number of essential capital projects which are critical to sustaining gas production in Tanzania through to the end of the license period. The Government of Tanzania has shown a long-term commitment to natural gas through its investment in gas infrastructure and we will continue to develop the Songo Songo field with our partner, the Tanzania Petroleum Development Corporation, to fuel economic growth and prosperity in country.\u00a0<\/em><\/p>\n

We are delighted to have engaged Canaccord and Investec who are expected to help the Company expand its institutional investor bases in Europe and Africa. They will also assist us with communicating the success of our project in Tanzania and the long-term investment case of the Company.\u00a0 I look forward to keeping our shareholders appraised of developments over the coming months.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Orca has reported that on August 3, 2020 signed a contract with China Petroleum and Technology Development Company (CPTDC) for the design, supply, installation and commissioning of natural gas compressors … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7443,11],"tags":[8154,8155,8153,2883,2365,8158,8159,8156,8157,2463,2466,8160],"class_list":["post-8815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-eastern-africa","category-top-news","tag-china-petroleum-and-technology-development-company","tag-cptdc","tag-orca-energy","tag-songas","tag-songo-songo","tag-songo-songo-north","tag-songo-songo-west","tag-ss-10","tag-ss-3-ss-4","tag-tanesco","tag-tanzania","tag-tanzania-electricity-supply-company","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/KinyereziI1.jpg?fit=700%2C525&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2ib","jetpack-related-posts":[{"id":6201,"url":"https:\/\/www.oilnewskenya.com\/index.php\/orca-exploration-receives-government-approval-additional-gas-plan-2-songo-songo-field\/","url_meta":{"origin":8815,"position":0},"title":"Orca Exploration Receives Government approval of Additional Gas Plan 2 from the Songo Songo Field","author":"","date":"July 29, 2017","format":false,"excerpt":"Orca Exploration Group has announced the approval of the Second Additional Gas Plan (AGP-2) by the Government of Tanzania, more than doubling the available volume of Additional Gas for sale from the Songo Songo Field. Under the Production Sharing Agreement for the Songo Songo gas field, production is identified as\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/PanAfrican-Energy-Tanzania-Ltd-East-Africa-.jpg?fit=645%2C331&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/PanAfrican-Energy-Tanzania-Ltd-East-Africa-.jpg?fit=645%2C331&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/PanAfrican-Energy-Tanzania-Ltd-East-Africa-.jpg?fit=645%2C331&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":2635,"url":"https:\/\/www.oilnewskenya.com\/index.php\/orca-considering-first-phase-offshore-development-tanzania\/","url_meta":{"origin":8815,"position":1},"title":"Orca considering first phase of offshore development in Tanzania","author":"","date":"February 26, 2015","format":false,"excerpt":"Orca exploration has said it is contemplating a first phase of offshore development consisting of working over two existing wells (SS-5 and SS-9) that are currently suspended in order to fill the existing Songas infrastructure to capacity and provide operational redundancy. This follows under-utilization of the existing infrastructure with the\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/02\/Songo-Songo-Orca-exploration.png?fit=302%2C417&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4386,"url":"https:\/\/www.oilnewskenya.com\/index.php\/orca-exploration-completes-offshore-workover-drilling-program-phase-at-songo-songo\/","url_meta":{"origin":8815,"position":2},"title":"Orca Exploration completes offshore workover & drilling program phase at Songo Songo","author":"","date":"February 22, 2016","format":false,"excerpt":"Orca Exploration Group Inc announces the successful completion of its offshore workover and drilling program and the release of the Paragon M826 mobile drilling workover rig from the Songo Songo Main Field. The Off-Shore Programme of the Songo Songo Main Field development programme included workovers on three existing wells (SS-5,\u2026","rel":"","context":"In \"Dar es Salaam\"","block_context":{"text":"Dar es Salaam","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/dar-es-salaam\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/05\/orca-exploration.gif?fit=400%2C553&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3966,"url":"https:\/\/www.oilnewskenya.com\/index.php\/orca-exploration-closes-60-million-financing-for-tanzanias-songo-songo-development-from-ifc\/","url_meta":{"origin":8815,"position":3},"title":"Orca Exploration Closes $60 million financing for Tanzania\u2019s Songo Songo development from IFC","author":"","date":"October 30, 2015","format":false,"excerpt":"Orca Exploration has announced that it has entered into a loan agreement with International Finance Corporation (IFC), a member of the World Bank Group, for a US$60 million investment in the Company's operating subsidiary, PanAfrican Energy Tanzania Limited (PAET). According to Orca Exploration the proceeds of the Loan will be\u2026","rel":"","context":"In \"International Finance Corporation\"","block_context":{"text":"International Finance Corporation","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/international-finance-corporation\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/09\/Paragon-Offshore-jack-up-rig-M826.jpg?fit=356%2C213&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":6198,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-seeks-minority-investment-orca-group\/","url_meta":{"origin":8815,"position":4},"title":"Swala Oil & Gas Seeks minority investment in the Orca Group","author":"","date":"August 15, 2017","format":false,"excerpt":"Orca Exploration Group has confirmed that it is in discussions with Swala Oil & Gas (Tanzania) plc regarding a possible minority investment in PAE PanAfrican Energy Corporation (PAEM), a Mauritius-registered company that is a wholly-owned subsidiary of the Company. Orca which is the operator of the 879 Bcf Songo Songo\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/swala-energy-orca-exploration.png?fit=331%2C303&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":13424,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-orca-energy-provides-operational-update-2\/","url_meta":{"origin":8815,"position":5},"title":"TANZANIA: Orca Energy Provides Operational Update","author":"","date":"February 1, 2023","format":false,"excerpt":"OPERATIONAL Production Gross sales of conventional natural gas, classified as Additional Gas (as defined in the PSA (as defined herein)) (\u201cgas sales\u201d) averaged 95.5 MMscfd during Q4 2022 which increased average gas sales to 86.8 MMscfd for the year 2022, representing a 42% increase from 2021.\u00a0 Orca forecasts average gross\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=8815"}],"version-history":[{"count":3,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8815\/revisions"}],"predecessor-version":[{"id":8820,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/8815\/revisions\/8820"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/8821"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=8815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=8815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=8815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}