Petroleum Sharing Agreement for Muzarabani Oil and Gas Project Now in Place

Government has announced that the long-awaited Consolidated Petroleum Production Sharing Agreement (PPSA) and the Petroleum Exploration and Production Agreement (PEPA) for the Muzarabani Oil and Gas Project are now in place, paving the way for further development of the project which has been granted national project status, Mining Zimbabwe can report.

By Rudairo Mapuranga

Information Minister Dr Jenfan Muswere confirmed the development after today’s Cabinet briefing, noting that the agreement represents a major milestone for Zimbabwe’s emerging oil and gas sector.

Mines and Mining Development Minister Winston Chitando provided context on the progress of the Muzarabani project, explaining that the sequence of exploration work had confirmed potential commercial viability.

“Initially, a seismic survey was carried out to locate the best drilling sites in the basin. A rig was then brought in, and drilling took place with samples tested locally and internationally. Results pointed to commercial potential, which necessitated the negotiation of a production sharing agreement. An inter-ministerial committee engaged with the investor’s team to produce a draft, which is now finalised. The fact that the rig remains in-country on standby shows that further drilling will proceed soon,” Chitando said.

The finalisation of the PPSA comes after years of speculation and investor frustration over delays. In February, Invictus Energy Managing Director Scott Macmillan had highlighted the PPSA as the cornerstone for ensuring equitable value sharing from the Cabora Bassa Project. At the time, stakeholders had expressed skepticism, with some questioning whether the delays would ever end.

Invictus, which is listed on the Australian Stock Exchange and the Victoria Falls Stock Exchange, has already recorded significant exploration success in the Cabora Bassa Basin, including discoveries at the Mukuyu field. However, despite these achievements, investors had grown increasingly impatient, with one bluntly remarking, “It is all about the PPSA. Nothing else matters right now.”

Now that the agreement is in place, optimism is likely to return as the deal secures a regulatory framework critical for investment, revenue-sharing, and long-term development of Zimbabwe’s gas industry. Invictus has also outlined plans for further drilling, a new exploration well at Masuma 1, and a pilot gas-to-power project that will supply nearby mines with reliable energy.

The Muzarabani oil and gas venture has the potential to transform Zimbabwe’s energy landscape by reducing dependence on imports, creating jobs, and generating foreign currency. With the PPSA finally secured, government and investors alike will now be under pressure to turn exploration success into commercial reality.