HARARE – The Government of Zimbabwe and Invictus Energy’s local subsidiary, Geo Associates, today signed a landmark Petroleum Production Sharing Agreement, ending years of painstaking negotiations and clearing the legal path for the country’s first commercial oil and gas development, Mining Zimbabwe can report.
By Rudairo Mapuranga
The signing ceremony, held at the Treasury building in the capital on Wednesday, was attended by Finance Minister Mthuli Ncube, the Ministers of Energy and Mines, and Invictus Managing Director Scott Macmillan. The deal establishes the legal and fiscal rules for exploring and producing oil and gas in the vast 360,000-hectare Cabora Bassa Basin in northern Zimbabwe and will also serve as the template for all future petroleum contracts in the country.
“This agreement is finally done,” Macmillan declared at the signing. “It has been a hard-fought process over many years.”
He described the pact as a “win-win agreement” that provides a “stable and transparent legal and fiscal framework” for the project and will serve as a “model contract for future agreements and other companies wishing to come and explore and develop projects” in Zimbabwe.
Macmillan said the agreement includes measures to “accelerate the project development, providing us with measures that allow us, particularly in the early phases, to provide ease of importing equipment” and “bankability measures to ensure that we can attract the capital and expertise into this highly intensive sector.”
In return, he noted, “what the country benefits from that is a first in the resources sector here, a share of the profits or product.”
‘A Strategic National Undertaking’
Finance Minister Mthuli Ncube, who led the government delegation, described the signing as a defining moment for the southern African nation.
“The development of the Cabora Bassa project represents a strategic national undertaking with the potential to reshape Zimbabwe’s economic landscape,” Ncube said.
The minister outlined the government’s core objectives for the project, including “promoting value addition and beneficiation, attracting long-term investment, ensuring the prudent exploitation of natural resources, enhancing energy self-sufficiency, creating employment opportunities for Zimbabweans, and accelerating rural and provincial development.”
Ncube, who said he had visited the project site, added: “I can see the rural transformation already. That project is transforming rural areas. I also thank you for the corporate social responsibility work you’re already undertaking in the neighbouring communities. This is fully commendable.”
Energy Security and Balance of Payments
The finance minister stressed the macroeconomic importance of developing domestic oil and gas. “As government, we are particularly encouraged that this project has the potential to reduce Zimbabwe’s import dependency on petroleum products and strengthen national energy resilience,” he said.
“This is critical for improving our balance of payments position, stabilising production costs across sectors of the economy, and supporting long-term macroeconomic growth.”
Ncube also noted that Invictus’ secondary listing on the Victoria Falls Stock Exchange “added credibility to that stock exchange, and we’ve seen more and more instruments and companies listing on the exchange.” He described this as a contribution to “deepening capital markets and investor choice.”
Local Content and Community Development
The finance minister said the PPSA incorporates provisions for local employment, domestic procurement, environmental protection, and community development. “This reflects government’s commitment to ensuring that natural resources exploitation becomes a catalyst for sustainable national development.”
He also hinted at potential special economic zone status for the project area. “We want to declare a few special economic zones, including your own,” Ncube said, “and going forward, we should deepen economic development in that part of the country.”
‘It Will Last a While’
Mines Minister Polite Kambamura, who also spoke at the event, framed the agreement’s lengthy negotiation as a strength. “A foundation that took so long to build will also last a long time,” Kambamura said. “I’m here to stay for a while, so that means it will last a while.”
He added that the PPSA’s completion “will open doors for more funding for the project.”
“Macmillan is one of the guys who heeded the President’s call,” Kambamura said, addressing potential investors directly. “To those who want to make money, come to Zimbabwe. You can come to Zimbabwe now and make money.”
A Basin With World-Class Potential
The Cabora Bassa Basin contains the Mukuyu gas field, ranked by Wood Mackenzie as Sub-Saharan Africa’s second-largest petroleum discovery of 2023. Independent estimates suggest the field could hold up to 20 trillion cubic feet of gas and 845 million barrels of conventional gas condensate.
Invictus has already begun well pad preparation for the Musuma-1 exploration well, which targets 1.2 trillion cubic feet of gas and 73 million barrels of condensate. Drilling is planned for the second half of 2026, with rig contracts expected in June.
“We are very, very pleased, and as I said, we’re pleased now to be getting back to the operational phase,” Macmillan said. “We have an exciting period ahead of us where we’ll be drilling again and moving towards development of this very important resource.”
