11:07 AM EDT, 08/01/2024 (MT Newswires) -- Orca Energy Group (ORC-B.V) on Thursday confirmed the gas-supply agreement between the Tanzania Electricity Supply Company, Orca subsidiary PanAfrican Energy Tanzania (PAET), and the Tanzania Petroleum Development Corporation (TPDC) has been extended to October 10, 2026. However, the dispute concerning the Songo Songo gas field continues.

TPDC has formally advised PAET that it intends to assign the right to explore and develop gas on the Songo Songo field to power-producer Songas, whose right was to have expired on July 31. PAET has confirmed that it will not consent to such an amendment.

TPDC has also rejected any moves by PAET and Tanzania Portland Cement to enter into a new gas sales agreement.

Orca said if the dispute with the TPDC is not resolved in the near-term, the Board will be forced to "significantly" reduce costs and ensure capital expenditure projects are in line with signed gas sales contracts and economic returns.

Orca's Class B shares were last seen down $0.10 to $3.30 on the Toronto Stock Exchange.

Price: 3.30, Change: -0.10, Percent Change: -2.94