Australia Stock Exchange listed oil and gas exploration junior Invictus Energy which is exploring oil and gas in northern Zimbabwe’s Cabora Bassa Basin (Muzarabani-Mbire) is poised for a potentially transformative 2025, according to Managing Director Scott Macmillan. However, investors and stakeholders are growing increasingly skeptical about the company’s progress as delays in executing the Petroleum Product Sharing Agreement (PPSA) between Invictus and the Zimbabwean government persist, Mining Zimbabwe can report.
By Rudairo Mapuranga
In his latest outlook for 2025, Macmillan outlined ambitious plans, including the advancement of the Mukuyu gas-to-power project, further exploration drilling, and a board visit to progress key initiatives. Yet, these updates have been met with frustration from stakeholders who are impatient for the finalization of the PPSA, which is seen as the cornerstone for ensuring the equitable sharing of value generated from the Cabora Bassa Project.
While Invictus Energy achieved significant exploration success in 2023, including two major gas discoveries at the Mukuyu field, the continued delay in finalizing the PPSA has cast a shadow over these milestones. The agreement, once executed, will not only secure long-term revenue-sharing terms for the Zimbabwean government but also unlock the regulatory framework needed to advance the country’s nascent oil and gas sector.
One stakeholder vented their frustration, commenting, “Blah, blah, blah – heard it all before. It is all about the PPSA. Nothing else matters right now.” Another echoed similar sentiments, “WHERE IS THE PPSA???? ALL TALK NO ACTION.”
The lack of tangible progress on the PPSA has sparked concerns about investor returns. One shareholder expressed their frustration, stating, “That outlook doesn’t include a return for investors!” The mounting skepticism highlights the increasing pressure on Invictus to deliver results beyond exploration success.
In response to the growing frustration, Macmillan has reassured stakeholders that the company is on the verge of finalizing the PPSA, calling the completed review by external European legal counsel a “major milestone” for Invictus. He emphasized that the PPSA would provide the robust governing framework necessary to ensure the long-term success of the Cabora Bassa Project.
“Once executed, the PPSA will ensure the long-term success of the Cabora Bassa Project, which has the potential to address the region’s growing demand for a reliable energy source,” Macmillan said.
The agreement, which will be key in attracting strategic partnerships and farm-out opportunities, is expected to be a game-changer for Zimbabwe’s energy security.
Looking ahead, Invictus Energy has a busy year planned, with Macmillan outlining several key initiatives, including the Masuma 1 well as the company’s next major exploration effort. This well will target the Dande play in eastern Cabora Bassa, which is estimated to have a recoverable prospective resource of over 1 trillion cubic feet (Tcf) of gas and 73 million barrels of condensate.
In tandem with exploration activities, the company is pushing forward with its pilot gas-to-power project to provide energy to the nearby Eureka Gold Mine. This project is critical for Invictus, as it offers an opportunity to demonstrate the commercial viability of Zimbabwe’s fledgling gas industry.
Despite the ambitious plans, the unresolved PPSA remains a sticking point, and stakeholders are growing weary of the delays. Macmillan has promised to keep investors updated as the company continues to push for the execution of the PPSA and other key milestones in 2025.
While there is optimism about Invictus Energy’s long-term potential, many stakeholders remain focused on immediate concerns. As one shareholder bluntly put it, “Looking a bit tired of talking.” The general sentiment among investors suggests that action, particularly on the PPSA, is needed sooner rather than later to maintain confidence in the company’s trajectory.
The Cabora Bassa Project holds significant promise, with Invictus positioning itself as a major player in Zimbabwe’s energy landscape. However, the road to success will require navigating regulatory hurdles, securing strategic partnerships, and, most importantly, delivering on investor expectations.
As 2025 is ongoing, all eyes remain on whether Invictus can turn its exploration success into tangible commercial progress, starting with the long-awaited PPSA.
