Mounting unpaid debt by the Tanzanian government has forced Orca to hold off development drilling for a crucial gas project. The government parastatal involved is Tanzanian Electricity Supply Company(TANESCO).
“Mounting unpaid TANESCO receivables and unresolved negotiations with the Government Negotiating Team (“GNT”) have resulted in a decision by Orca to defer drilling the SS-12 developmentwell at this time”, Orca says in a report.
“The Company’s initial plan was to move the rig to drill SS-12 immediately following the completion of SS-11. The Company intends to return to SS-12 and drill the well when additional deliverability is required and the issues with TANESCO and the GNT have been resolved”.
