Zimbabwe is moving closer to formalising its upstream oil and gas framework, with a Petroleum Production Sharing Agreement (PPSA) between the government and Invictus Energy expected to be signed in April, a key step that could advance development of the country’s Cabora Bassa Basin project, Mining Zimbabwe can report.
By Ryan Chigoche
The agreement follows the completion of a final “all-party review,” according to Invictus Energy, and is set to establish the fiscal and legal foundation for petroleum exploration and production in Zimbabwe.
Once executed, the PPSA is expected to serve as a model contract for future investors entering the country’s hydrocarbons sector, effectively shaping the regulatory architecture of Zimbabwe’s emerging oil and gas industry.
The deal comes as Zimbabwe continues efforts to diversify its energy mix and reduce reliance on imported fuels and electricity, with policymakers increasingly viewing domestic gas resources as a potential long-term alternative for power generation and industrial supply.
Invictus Managing Director Scott Macmillan said the company is working closely with authorities as the agreement nears completion.
“We continue to work closely with the Government of Zimbabwe as the PPSA moves toward execution.
Establishing a strong and bankable petroleum industry regulatory framework is critical to unlocking the full value of the Cabora Bassa Project and the Mukuyu discovery.
We remain well-positioned to move forward rapidly following execution of the PPSA, with a clear pathway towards commercialisation and development, including relevant permits for an early production gas-to-power pilot project.”
Finance Minister Mthuli Ncube said the agreement reflects a deliberate effort to balance investor confidence with long-term national interests while ensuring alignment with international best practice.
“The Cabora Bassa Project represents a transformative opportunity for Zimbabwe’s energy sector and broader economy.
The additional time taken reflects a clear commitment to ensuring the agreement is robust, internationally competitive, and fully aligned with long-term sector development objectives.
The Petroleum Production Sharing Agreement reflects international best practice while safeguarding Zimbabwe’s long-term national interests and establishes a durable and investor-aligned framework,” Ncube said.
Invictus Energy has been at the centre of exploration activity in the Cabora Bassa Basin in northern Zimbabwe, where it has already reported significant gas-condensate discoveries at the Mukuyu prospect. The company is now preparing to move into appraisal and potential early development phases.
Execution of the PPSA would unlock the next stage of its work programme, including further appraisal of the Mukuyu gas field—following the Mukuyu-1 and Mukuyu-2 discoveries—and the drilling of the Musuma-1 exploration well in the eastern portion of the basin, which is designed to test a new geological play.
The company says the agreement is critical to enabling a clearer pathway toward commercialisation, including plans for an early production gas-to-power pilot project, which could provide initial output to support Zimbabwe’s power supply constraints.
Zimbabwe’s hydrocarbon potential remains largely underexplored, but interest in the Cabora Bassa Basin has increased following early discoveries that suggest the presence of commercially viable gas resources in the onshore basin.
If successfully executed and advanced to production, the project could mark one of the country’s most significant steps toward establishing a domestic natural gas industry, with potential implications for power generation, industrial energy supply, and import substitution.
For now, the April PPSA signing is being viewed as a critical gateway moment—determining how quickly Zimbabwe can transition from exploration success to commercial development in its upstream energy sector.
