Invictus Energy Limited says it has received an updated draft of the amalgamated Petroleum Production Sharing Agreement (PPSA) for its Cabora Bassa gas and oil project in Zimbabwe, marking progress towards securing the necessary approvals for future development.
By Ryan Chigoche
The Australian-listed company, which holds an 80% operating stake in the project, noted that the finalisation of the PPSA is ongoing, following collaborative discussions with relevant line ministries in the Republic of Zimbabwe.
The finalisation timeline has been extended slightly as new terms introduced by external legal advisors were incorporated into the agreement.
Despite this, Invictus said all stakeholders remain committed to delivering a contract that reflects international best practices.
The Zimbabwean government recently decided to merge the Petroleum Exploration Development and Production Agreement (PEDPA) with the PPSA into one streamlined document.
Invictus confirmed it is actively engaged in finalising this consolidated agreement.
“We are greatly encouraged by the government’s continued support and the positive momentum towards finalising the PPSA,” said Invictus Managing Director Scott Macmillan.
“The Ministry of Finance’s agreement to provide National Project Status is a key milestone, and we look forward to completing the formalities in due course. We remain on track with preparations for Mukuyu-1 and are excited about the next phase of activity at Cabora Bassa,” he added.
In a significant boost for the project, Zimbabwe’s Ministry of Finance has also agreed to grant the Cabora Bassa Project National Project Status (NPS).
This designation is reserved for strategically important investments that are expected to drive national economic growth, attract foreign capital, and create jobs.
The company is now in the final stages of the formal process required for the official granting of NPS. Once conferred, the status will unlock various fiscal and non-fiscal incentives for the project, including duty exemptions, accelerated permitting processes, and improved access to critical infrastructure and government services.
Commenting on the progress, the Minister of Finance expressed strong backing for the project, stating:
“The Cabora Bassa Project is a nationally significant development, and we are working closely with Invictus to finalise the PPSA and ensure a transparent, fair, and commercially sound agreement. The government looks forward to the successful formalisation of National Project Status and the long-term benefits the project will bring to Zimbabwe.”
Government officials have also reiterated their support for the Cabora Bassa Project and their commitment to ensuring the final agreement is “fair, transparent, and balanced.”
A series of stakeholder meetings are scheduled to wrap up the outstanding issues and conclude the PPSA and related instruments.
Meanwhile, Invictus said it has begun contracting and procurement processes for long-lead items and essential services required for the drilling of the Mukuyu-1 exploration well. The company is targeting the spud date for the well in the second half of 2025.
