Songo Songo gas deal sees Taifa Gas buy 49% stake

Tanzania’s energy sector entered a new phase this week as Orca Energy Group Inc. announced its exit from the Songo Songo gas deal, transferring its stake to local and regional players. Taifa Gas will acquire 49% of PAE PanAfrican Energy Corporation (PAEM), whilst Amber Energy Investment takes a controlling 51 percent stake. The transaction marks the end of Orca’s 25-year involvement with Songo Songo, which the company has operated since 2001.

Orca’s board determined that divesting the Tanzanian business aligns with its strategy to realise shareholder value. The exit follows years of uncertainty surrounding licence extensions and production-sharing agreements for the field. By moving the asset to a buyer group anchored by Taifa—a market leader in liquefied petroleum gas importation, storage and distribution across Tanzania—the transaction promises operational continuity and accelerated development.

Local ownership reshapes Tanzania’s gas sector

The shift to greater Tanzanian ownership carries strategic weight for East Africa’s energy landscape. Taifa brings established operating presence and deep sector focus to the Songo Songo asset. Mr. Rostam Aziz, owner of Taifa Gas Tanzania Limited, emphasised that local control “deepens industrial capacity and keeps profit in country, creating wealth for everyone.” This ownership structure positions domestic players to lead Tanzania’s gas development rather than rely on foreign operators.

The timing proves significant as Tanzania prepares to sign a major liquefied natural gas project before June. The proposed $42 billion LNG plant aims to begin production within eight years, transforming the country into a regional energy hub. Songo Songo’s stable transition under new management removes a key obstacle to broader sector expansion.

What investors should watch

For shareholders, Orca’s orderly exit preserves cash for distributions whilst transferring operational risk to better-positioned operators. Taifa and Amber’s combined expertise in gas handling and investment capacity suggests the field will continue producing reliably. The deal removes regulatory uncertainty that had clouded Orca’s Tanzanian operations, creating a clearer investment environment for future projects.

Tanzania’s energy sector now rests increasingly in local hands. As the country pursues its LNG ambitions, the Songo Songo gas deal demonstrates how strategic asset transfers can unlock value whilst building domestic industrial capacity. Investors tracking East African energy should monitor whether this transition accelerates Tanzania’s path to becoming a significant gas exporter.

The post Songo Songo gas deal sees Taifa Gas buy 49% stake appeared first on FurtherAfrica.