Orca Exits Tanzania in $10 Deal as Rostam Aziz Expands Energy Footprint

Canadian firm Orca Energy Group has agreed to exit its Tanzanian operations in a symbolic $10 deal, transferring control of key gas assets to a consortium led by Tanzanian billionaire Rostam Aziz.

The transaction will see Aziz’s company, Taifa Gas, acquire a 49% stake in the holding firm behind the Songo Songo gas project, while Dubai-based Amber Energy Investment takes a controlling 51% share.

Strategic Exit Amid Rising Risks

Orca’s decision to walk away from Tanzania comes after a review of mounting operational challenges. These include legal disputes, tax claims, and uncertainty over the extension of key production licences.

The company said continuing operations would require significant financial commitments in a high-risk environment, making the exit the most viable option to protect shareholder value.

A Key Asset Changes Hands

The deal involves the Songo Songo gas project, one of Tanzania’s most important energy assets, which supplies natural gas for electricity generation and industrial use.

With Orca’s departure, full control of its Tanzanian business will shift to new investors, marking the end of its long-standing presence in the country.

Boost for Local Ownership

For Aziz, the acquisition represents a major step in expanding local participation in Tanzania’s energy sector. Analysts say the move reflects a broader trend of domestic investors taking greater control of strategic natural resources.

However, some experts caution that the circumstances surrounding Orca’s exit could raise concerns among foreign investors about the country’s investment climate.

A Turning Point for Tanzania’s Energy Sector

The deal signals a shift toward greater local control of energy assets, with Taifa Gas expected to play a central role in the next phase of development of the Songo Songo project.

While the transition could strengthen domestic industry, its success will depend on regulatory approvals and how effectively the new owners manage the asset going forward.