Canada’s Orca walks away for $10 as Tanzanian billionaire Rostam Aziz takes over key gas asset

Tanzania’s energy sector is entering a decisive new phase after a little-known but high-stakes deal saw a major foreign operator walk away from one of the country’s most important gas assets for just $10.

Under an agreement announced on April 13, Taifa Gas, owned by Tanzanian billionaire Rostam Aziz, acquired a 49 per cent stake in PanAfrican Energy Corporation (PAEM), the company behind the Songo Songo gas field.

Dubai-based Amber Energy Investment L.L.C-FZ will take the remaining 51 per cent, giving the new consortium full control.

The transaction marks the complete exit of Canada’s Orca Energy Group after more than two decades in Tanzania.

A $10 exit that signals deeper problems

Orca’s decision to sell for a nominal $10 underscores the mounting risks tied to operating in Tanzania’s gas sector.

The company pointed to unresolved tax disputes, potential arbitration liabilities and, critically, uncertainty over the renewal of the Songo Songo licence, which is due to expire this year.

Staying on would have required significant new investment under unclear regulatory conditions.

Rather than commit fresh capital, Orca chose to exit, closing a chapter that began in the early 2000s when it took control of the asset.

The Songo Songo field is not just another gas project. It is central to Tanzania’s economy.

The offshore field has produced more than 500 billion cubic feet of gas and supplies a large share of the country’s electricity generation.

It also supports industries ranging from manufacturing to mining, making it a backbone of economic activity.

At a time when Tanzania is pushing to industrialise and reduce reliance on imported fuels, control of the asset carries both economic and political weight.

Local player steps into upstream

For Taifa Gas, the acquisition marks a strategic leap.

The company is already Tanzania’s largest liquefied petroleum gas distributor, with expanding operations across East Africa.

Moving into upstream gas production shifts it from a downstream player to a more integrated energy company.

Rostam Aziz described the deal as a turning point, saying stronger local ownership would help retain more value within Tanzania and support industrial growth.

Analysts say the move could deepen local supply chains, increase reinvestment in the economy and create more opportunities for domestic firms within the gas value chain.

A shift across Africa

The deal reflects a growing trend across African energy markets, where governments and local investors are pushing for greater control of natural resources long dominated by foreign firms.

In Tanzania, that shift is happening alongside ambitious plans to develop a $42 billion liquefied natural gas (LNG) project aimed at tapping more than 47 trillion cubic feet of reserves.

The project, if realised, could position the country as a major gas exporter, competing with Mozambique for influence in global LNG markets.

While increased local ownership is politically and economically attractive, execution will be key.

Running a complex gas asset requires technical expertise, stable financing and consistent regulation, areas that have historically challenged both local and international operators.

The deal is still subject to regulatory approvals, and authorities are expected to closely assess its impact on competition and long-term sector stability.

What comes next

If approved, the transaction could reshape Tanzania’s energy landscape, giving local investors a stronger foothold in a strategic sector while testing the country’s ability to balance domestic control with investor confidence.

For businesses, especially those reliant on gas, the shift could mean more stable supply and new partnership opportunities.

But the bigger question is whether this marks the start of a sustained transition, or a one-off response to rising risks that pushed a long-standing foreign investor out.