Orca Energy Group Inc. Announces $1.2 billion of Claims Against the United Republic of Tanzania and Tanzania Petroleum Development Corporation

Core Viewpoint - Orca Energy Group Inc. and its subsidiaries have initiated a notice of dispute against the Government of Tanzania for breaches of investment treaties and contractual agreements, claiming damages exceeding $1.2 billion [1][10]. Group 1: Company Operations and Contributions - PanAfrican Energy (Tanzania) has been operational in Tanzania for over 20 years, investing over $311 million and creating more than 100 local jobs [2]. - The company’s operations have contributed over $725 million annually to Tanzania's GDP and provided over $900 million in cash flows to the Tanzanian government [2]. - Additionally, the company has invested more than $6.6 million in Corporate Social Responsibility projects, focusing on health and education in local communities [2]. Group 2: Legal and Contractual Issues - The company has issued a notice of dispute regarding breaches of the Agreement on Promotion and Reciprocal Protection of Investment between Mauritius and Tanzania, as well as breaches of the Production Sharing Agreement and Gas Agreement with the Tanzanian government and TPDC [1][10]. - The company claims that the Tanzanian government has failed to apply for an extension of the Songo Songo Development License, which is set to expire on October 10, 2026, despite a formal request made by the company [4]. - The Tanzanian government has made unsubstantiated allegations against the company regarding breaches of the License terms, which the company has denied [4]. Group 3: Gas Production and Supply Issues - The Protected Gas production from the Songo Songo Field ceased on July 31, 2024, and all gas produced thereafter is classified as Additional Gas [9][12]. - The Tanzanian government has directed TPDC to continue producing Protected Gas despite the contractual agreement that it would cease after July 31, 2024, which the company views as a violation of its rights [6][8]. - The company has proposed commercial terms for supplying Additional Gas to local entities, which have been rejected by TPDC based on the assertion that Protected Gas should continue [7].