01:47 PM EDT, 08/01/2025 (MT Newswires) -- Orca Energy Group (ORC-B.V) on Friday said it and its subsidiaries, Pan African Energy, and Pan African Energy Tanzania (PAET) requested arbitration from the International Centre for Settlement of Investment Disputes, against the government of Tanzania and Tanzania Petroleum Development (TPDC), a government entity, over their failure to develop and protect the Songo Songo gas to electricity project.

A total of three claims have been submitted. Among other things, Orca alleges that the government has failed to extend the Songo-Songo development license, which expires Oct. 10 next year, on commercially feasible terms. PAET formally requested the license extension in April, 2023.

Orca also alleges that TPDC has failed to pay royalties owing under the project's contractual framework, and that Tanzanian state agencies have "subjected PAET to regulatory and administrative pressures and harassment".

Orca currently values the Songo-Songo project at US$1.2 billion, and the precise amount of damages for the claims will be determined in the course of the arbitration proceedings, a statement said.

"Following a mutually successful partnership over the past twenty years, we were disappointed to have to have been compelled to initiate international arbitration proceedings against the United Republic of Tanzania and Tanzania Petroleum Development Corporation," said Jay Lyons, chief executive officer. "Since formally submitting our application for extension of the Licence in April 2023, the company has made every reasonable effort to engage in a constructive dialogue with all parties, with the aim of continuing and expanding operations under the Licence ... Despite our continued willingness to reach an amicable resolution, the lack of meaningful progress has left us with no viable alternative but to take decisive legal action to protect the rights of PAET and PAEM, and the interests of our shareholders.."

Orca Energy Class B shares were last seen down $0.03 to $3.15 on the TSX Venture Exchange.

Price: 3.15, Change: -0.03, Percent Change: -0.94