Invictus Energy Nears Completion of PPSA for Muzarabani Oil Project
Invictus Energy Limited is close to finalizing the Petroleum Production Sharing Agreement (PPSA) for its Cabora Bassa Project in the Muzarabani-Mbire Basin, marking a key step in the company’s transition from exploration to development following its landmark gas-condensate discovery at the Mukuyu field, Mining Zimbabwe can report.
By Rudairo Mapuranga
The PPSA, designed to ensure equitable value sharing among stakeholders, is critical for the long-term success of the project. It establishes a framework for collaboration between the Government of Zimbabwe, Invictus, and its partners, including the Mutapa Investment Fund (MIF), which has committed US$5 million of a US$10 million capital raise for the project.
The Mutapa Investment Fund has been chosen to represent Zimbabwe in the PPSA, holding an equity stake on the country’s behalf to ensure substantial benefits from its oil and gas resources.
Invictus Energy Managing Director Scott Macmillan expressed optimism about the imminent finalization of the PPSA, emphasizing its significance for Zimbabwe’s energy sector.
“Once executed, the PPSA represents a key step in ensuring the long-term success of the Cabora Bassa Project. It underscores our commitment to fostering robust partnerships with the host government and delivering sustainable benefits for all stakeholders, including the communities where we operate,” Macmillan said.
The Cabora Bassa Project is strategically important for Zimbabwe’s energy sector, with Invictus identifying eight high-potential prospects in the basin, estimated to hold 2.9 trillion cubic feet of gas and 184 million barrels of condensate. The Mukuyu field discovery has positioned Invictus as a significant player in Zimbabwe’s growing oil and gas industry.
The PPSA review, facilitated by the Africa Legal Services Facility and external European legal counsel, aims to ensure the agreement adheres to international best practices. This review is expected to conclude shortly, paving the way for the formal signing of the PPSA, which will govern future exploration, production, and revenue-sharing mechanisms.
The collaboration between Invictus and the Government of Zimbabwe, through the Mutapa Investment Fund, highlights the country’s commitment to harnessing its energy potential. The Cabora Bassa Project promises to enhance Zimbabwe’s energy production capacity while supporting broader economic goals, including attracting foreign direct investment and advancing the oil and gas sector.
As the PPSA’s execution approaches, Invictus Energy remains focused on advancing its exploration and production activities.
“We are proud to play a pivotal role in Zimbabwe’s critical oil and gas industry and remain committed to delivering long-term value for our shareholders,” Macmillan added.
The finalization of the PPSA is expected to solidify Zimbabwe’s position as a key player in the regional energy landscape, contributing positively to the development of the country’s energy infrastructure. Once fully operational, the project could provide much-needed energy security and drive economic growth for Zimbabwe.