Taifa Gas Tanzania Limited, owned by businessman Rostam Aziz, has signed a landmark agreement to acquire a stake in the Tanzanian gas operations of Orca Energy Group Inc., representing a significant shift in the country’s energy sector.
On April 13, 2026, it was announced that Taifa Gas will purchase a 49 percent stake in PAE PanAfrican Energy Corporation (PAEM), while Amber Energy Investment L.L.C-FZ will acquire the remaining 51 percent.
The transaction includes the sale of 100 percent of Orca’s Tanzanian business, encompassing all interests in the Songo Songo gas project, a vital source of natural gas for electricity generation and industrial applications in Tanzania.
Analysts have labeled the deal a historic turning point, indicating a broader trend toward increased local participation in strategic natural resources.
Speaking on the development, Aziz stated that the deal has been in preparation for an extended period and aims to ensure that Tanzania reaps greater benefits from its natural resources.
He emphasized that increased local ownership would bolster the domestic economy and stimulate investments in gas-dependent industries.
He also pointed out that the Songo Songo project has made significant contributions to government revenues, as well as to employment and skills development for Tanzanians.
Orca, for its part, explained that the decision to divest was the result of a thorough review of operational challenges in
Tanzania, which include uncertainties around the extension of the gas production license, ongoing legal disputes, and tax claims.
The company’s board noted that maintaining operations in Tanzania would require substantial financial commitments in a high-risk environment.
It further stated that project development costs, arbitration cases, and contractual obligations would demand significant long-term capital investment.
As a result, Orca chose to exit the business to protect shareholder interests and reduce future risks.
Orca’s operations in Tanzania were conducted through PanAfrican Energy Tanzania Limited, which holds rights and obligations under gas production agreements with the Tanzania Petroleum Development Corporation (TPDC) and the government.
Upon completion of the transaction, Orca will no longer have any ownership or obligations tied to its Tanzanian operations.
However, the deal is still subject to regulatory approvals from relevant authorities, including the Fair Competition Commission and the minister responsible for petroleum.
Energy experts believe this move could enhance local participation, boost competition, and usher in a new chapter in the development of Tanzania’s gas sector.
