In this regard, Swala is currently having discussions with Orca Exploration Group, the sole owner of PanAfrican Energy.
Orca stated that it cannot guarantee that the ongoing discussions will result in a definitive agreement. If any such agreement is reached, then it will be based on Swala getting necessary financing along with meeting of various other conditions.
Orca chairman and CEO W. David Lyons said: “We would welcome Swala’s minority participation in the Orca Group. Orca has for some time sought the right partner for a minority stake in the Orca Group and we welcome Swala’s ability to attract and engage Tanzanian investors.
“Such an investment is strategic to Orca in underpinning the intrinsic value of our business and providing a platform from which to grow and diversify our company.”
According to Orca, any possible investment from Swala is not likely to impact the management or operation of PanAfrican Energy Tanzania, its operating subsidiary and a wholly-owned subsidiary of PAEM.
Besides, the investment, if made by Swala, would not affect the many cumulative benefits to be received by Tanzania from Orca’s participation in the Songo Songo gas-to-power project.
Considered as the first gas-to-power project in Sub-Saharan Africa, the Songo Songo Project was initiated by the Government of Tanzania. For the project, the government received technical and financial support from the World Bank and private sector investors, including the predecessor to Orca.
Swala CEO David Mestres Ridge Orca and Swala have been holding talks about an investment by the latter for some time.
Ridge added: “Our intention is to construct an approach that could lead to a significant interest in the investment being indirectly held by Tanzanian investors through their ownership in Swala, an efficient alternative to stock exchange listings that we believe creates a win-win situation for the Government of Tanzania and local and foreign investors alike.”
