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Liquidated Swala Oil & Gas claims $167 million from Orca Group
What you need to know:
- Swala alleges that the Orca Group repeatedly breached its obligations under the agreements and conspired to defraud Swala by misusing funds and assets from PAET for the exclusive benefit of the Orca Group, at the expense of Swala’s proportional entitlement.
Dar es Salaam. Swala Oil & Gas (Tanzania) Plc, currently under liquidation, has filed a claim worth $167 million (approximately Sh450 billion) against the Orca Group for alleging breach of contract and conspiracy to defraud.
The suit in the Commercial Division of the High Court, filed by Swala’s liquidator, Mr Daniel Welwel of Asyla Attorneys, names Orca Energy Group Inc (Orca), PAE Panafrican Energy Corporation (PAEM), and PanAfrican Energy Tanzania Limited (PAET) as defendants.
According to a statement issued by the liquidator, Swala’s claim centres on a 2015–2017 agreement that led to the creation of Swala’s wholly owned subsidiary, Swala (PAEM) Limited.
The subsidiary entered into an investment agreement to acquire a 7.933 percent stake in PAEM and signed a shareholders’ agreement with Orca and PAEM.
Swala alleges that the Orca Group repeatedly breached its obligations under the agreements and conspired to defraud Swala by misusing funds and assets from PAET for the exclusive benefit of the Orca Group, at the expense of Swala’s proportional entitlement.
“The constituent companies of the Orca Group (Orca, PAEM and PAET), and their respective directors conspired to defraud Swala by using funds and assets of PAET for the exclusive benefit of Orca, PAEM and PAET that would otherwise have been distributed to Swala proportionally to its equity in PAEM,” the liquidator said.
Swala claims that the actions of the Orca Group directly contributed to its financial collapse, allowing Orca to regain the 7.933 percent interest in PAEM at a discount.
The total claim also factors in the value associated with the renewal of the Production Sharing Agreement (PSA) and related contracts governing PAET’s operations on the Songo Songo gas licence.
According to an Orca press release dated August 8, 2024, the gross value of these agreements is estimated at $1.2 billion (about Sh3.3 trillion).
The case is proceeding under Commercial Case No. 11561 of 2025, with pre-trial proceedings scheduled to begin on July 15, 2025. The High Court’s Commercial Division directed Swala Oil & Gas (Tanzania) Plc to serve the court papers to the three energy firms it has sued in the commercial dispute.
In an order issued on May 27, 2025, Justice Dr C.K.K. Morris further directed that the defendants file their written statements of defence by June 20, 2025, and serve the plaintiff on the same day. Swala Oil & Gas is expected to reply to the defence filings by June 27, 2025.
