Orca group maintains maximum production

Orca Exploration Group has continued to produce natural gas at maximum capacity in this year’s second quarter to meet raising demand for electricity generation.

During the period under review, the parent company of PanAfrica Energy, the largest natural gas supplier, delivered additional gas sales volume of 54.9 million cubic foot a day (MMcfd) from 52.9MMcfd of the first quarter.

Orca’s Chairman and Chief Executive Officer David Lyons said this year has become pivotal for both the company and the power sector in the country.

“For Orca there have been solid accomplishments but also very serious challenges,” Mr Lyons said “…accounts receivable has increased due to continued delayed payments for gas deliveries to our major customer (Tanesco).” 

The company, however, said constructive discussions are going on with the relevant authorities and proposals are being received and actively discussed.

“As at the date of this report Orca is owed 28.2 million US dollars (about 45.12bn/-) for the additional gas sold to the state utility,” the CEO said in the financial statement released on Wednesday.

The Funds from operations before working capital changes were unchanged over the first quarter at 9.9 million US dollars to push earning to 0.28 US dollars per share, which tripled compared to the same quarter last year.

To eliminate persistent power interruptions and shortfalls in capacity, the country is accelerating the pace of developing its natural gas, Mr Lyons said.

At the end of this year’s second quarter, the government announced a lending agreement with the Export-Import Bank of China to fund approximately 1.2 billion US dollars (about 1.92tr/-) in energy infrastructure expansion.

The government announced its intention to utilize the majority of the funds to construct a new 24 inch to 36 inch pipeline to be laid between Mnazi Bay and Somanga Funga.

Source: The Daily News,http://www.dailynews.co.tz , reported by Abduel Elinaza

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