Friday, June 26, 2015

$60m okayed for gas project

 
 
In Summary
International Finance Corporation (IFC) has received approval by the board of the World Bank for an investment by IFC of up to $60 million in PanAfrican Energy Tanzania

Tortola, British Virgin Islands. Orca Exploration Group Inc. (Orca or the company), the parent company of PanAfrican Energy Tanzania Limited, announced yesterday that it is proceeding with the first phase of the Songo Songo development programme following the World Bank board approval of the International Finance Corporation (IFC) financing.
IFC has received approval by the board of the World Bank for an investment by IFC of up to US$60 million in PanAfrican Energy Tanzania Limited. The investment is currently contemplated as a subordinated, income participating loan with flexible repayment terms and a maximum tenor of approximately 10 years.
Completion of the IFC financing is subject to final agreement of specific terms and the negotiation and signing of definitive documentation. Initial drawdown of the facility will be subject to a number of terms and conditions, including satisfaction by IFC of the sustained payment performance of the Tanzania state utility, Tanesco, in respect of ongoing gas deliveries by the company.
Subsequent to the approval of the IFC financing, the company entered into a drilling contract with Paragon Offshore plc for the use of its M826 Mobile Drilling Workover Rig, as well as the provision of associated services, in order to execute the offshore phase of the development programme for the Songo Songo gas field.
The Paragon M826 Mobile Drilling Workover Rig was selected to operate in the somewhat unique shallow water operating environment around Songo Songo Island.
The company still needs to obtain certain regulatory and contractual approvals related to certain aspects of the development programme.

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