Page 11 - AfrElec Week 32

AfrElec GAS-FIRED GENERATION AfrElec

Orca seeking to sustain gas

production at Songo Songo field

TANZANIA CANADA-BASED Orca Energy Group said ear- of 2020 and in the first half of the year.
lier this week that it had taken steps to shore up In the April-June period, the company sold
production levels at Songo Songo, a natural gas an average of 50.6mn cubic feet (1.434mn cubic
field offshore Tanzania. metres) per day of gas from Songo Songo, down
In a statement, the company said it hoped by 1-.6% on the figure of 56.6 mmcf (1.6 mcm)
to achieve this aim by installing new compres- per day reported for the same period of 2019.
sion units at the gas-processing facility that Between January and June, it sold 53.5 mmcf
handles production from the offshore field. (1.51 mcm) per day, down by 10.1% on the figure
It explained that it had signed a contract with of 59.5 mmcf (1.68 mcm) per day reported for
China Petroleum and Technology Development the first half of last year.
Co. (CPTDC) for the design, supply, installation According to the statement, the decline in gas
and commissioning of these compressors at the sales stemmed from “sustained and significant
Songas gas-processing plant, which is located on rainfalls that enabled the Tanzania Electricity
Songo Songo Island. Supply Company (TANESCO) to operate its
CPTDC is due to make the new units opera- hydro facilities at high utilisation rates.” Orca
tional by the end of the second quarter of 2022, does expect sales volumes to rise in the second
Orca said. “The compressors will work in har- half of the year, though, as the country is now
mony with the previously installed refrigera- entering its dry season.
tion to address declining reservoir pressure and Nigel Friend, Orca’s CEO, expressed satis-
ensure [that] maximum production levels can be faction with the company’s operational results.
sustained, subject to demand, through to the end “Despite the challenging macro backdrop, we are
of the production-sharing agreement [PSA] in very pleased with Orca’s performance in the first
2026,” it added. six months of 2020,” he said. “We are well placed
The company put the total value of the con- to finance and deliver a number of essential cap-
tract with the Chinese contractor at $38mn. It ital projects [that] are critical to sustaining gas
said it had already incurred around $6mn in production in Tanzania through to the end of
costs in 2019 and expected to spend another the licence period. The government of Tanzania
$19mn by the end of this year. has shown a long-term commitment to natural
Orca went on to say that production rates had gas through its investment in gas infrastructure,
remained fairly steady at the Songo Songo field and we will continue to develop the Songo Songo
since the advent of the coronavirus (COVID-19) field with our partner, Tanzania Petroleum
pandemic. It also noted, though, that gas sales Development Corp. [TPDC], to fuel economic
had declined year on year in the second quarter growth and prosperity in [the] country.”™

NEWS IN BRIEF

POLICY to have obtained over 150 meters of POLICY
underground cables under false pretence from
Kenya arrests Kenya Power the Kenya Power depot in Donholm with the Mnangagwa Suspends Zesa
intention to connect a customer to electricity.
staff for illegal connetions conspired with the customer, who is still at Board
The two employees are believed to have
Investigative agencies in Kenya have this week large, to make the illegal connection after Zimbabwean President Emmerson
arrested three employees, and one customer receiving a bribe. Mnangagwa has suspended the Zimbabwe
of Kenya Power for alleged involvement in Efforts are underway to apprehend the Electricity Supply Authority (Zesa) Holdings
fraudulent activities against the company. customer involved in this incident. executive chair Sydney Gata and the entire
Two of the employees were arrested If found guilty, the two suspects will be Zesa board pending investigations into
on August 11 for allegedly obtaining charged with committing an economic crime allegations of corruption.
underground electricity cables illegally with and will be liable to pay a minimum of Sh5mn Mnangagwa has been under pressure
the intent to make an illegal connection. or serve a minimum jail term of ten years or to prove his commitment in dealing with
Ephantus Mwara Kauma and Peter both. corruption.In a statement last night,
Rukwaro Kamweru who were arraigned in a Mnangagwa also directed the Zimbabwe Anti-
Nairobi court on Wednesday are suspected Corruption Commission (Zacc) to investigate

Week 32 13•August•2020 www. NEWSBASE .com P11