Invictus Energy finalises gas deal with Zimbabwe govt, project gains national status
HARARE – Invictus Energy Limited, an independent upstream oil and gas company listed on the Australian Securities Exchange, has finalised terms of its long-awaited Petroleum Production Sharing Agreement (PPSA) with the Government of Zimbabwe, while the venture has also been granted National Project Status (NPS) to accelerate the development of the Muzarabani Gas Project.
The PPSA sets out how gas and revenue from the Cabora Bassa Basin will be shared between the company and the state once production begins. Detailed terms of the PPSA are yet to be disclosed.
At the same time, Finance Minister Mthuli Ncube has officially granted the Cabora Bassa Project the NPS, a designation reserved for ventures deemed strategic to the country’s economic growth.
The status qualifies the project for fiscal and non-fiscal incentives, including duty exemptions and priority access to infrastructure.
Invictus Managing Director Scott Macmillan said the latest development would provide “the stable and transparent framework required to progress development.”
“Agreement of the PPSA terms and the granting of National Project Status represent two pivotal milestones for Invictus and the Cabora Bassa Project,” Macmillan stated.
“The PPSA provides the stable and transparent framework required to progress development, while NPS delivers tangible fiscal benefits to reduce costs and accelerate execution.
“This recognition underscores the strategic importance of our discovery and the potential it holds to transform Zimbabwe’s energy landscape
“These outcomes highlight the Government of Zimbabwe’s strong commitment to unlocking the country’s energy potential. We are grateful for their support and look forward to executing the PPSA and moving towards development of the Cabora Bassa Project.”
Ncube said the government is committed to ensuring the deal is “transparent, fair and commercially sound” and highlighted its importance for economic and energy security.
“The Government of Zimbabwe recognises the economic, energy security and social opportunity Cabora Bassa presents.
“We are pleased to be working closely with Invictus Energy through its récent strategic partnership with Al Mansour Holdings and to finalise the PPSA to ensure a transparent, fair and commercially sound agreement that benefits the people of our nation.
“The Government is committed to fostering a competitive and attractive investment environment, and we are delighted to partner with Invictus Energy as this landmark project advances towards development,” Ncube said.
Government last year enlisted the African Legal Support Facility, a unit of the African Development Bank, to help negotiate the agreement, recognising its limited experience in oil and gas contracts.
The Muzarabani project, located in the Cabora Bassa Basin, is Zimbabwe’s most advanced attempt to tap into domestic gas resources. It has been granted incentives to accelerate progress and recently secured a partnership with Qatar’s Al Mansour Holdings.
Al Mansour Holdings has since purchased a 19.9% shareholding in Invictus Energy for US$24.56 million and pledged up to US$500 million to advance the Cabora Bassa gas project in Zimbabwe.
The fresh capital injection will support immediate exploration work, including drilling the Musuma-1 well, one of the company’s top priorities.
As part of the deal, the Qatari company, chaired by Sheikh Mansour bin Jabor bin Jassim Al Thani, and Invictus will establish a joint venture known as Al Mansour Oil & Gas (AMOG).
The partnership will focus on acquiring oil and gas assets across Africa. Invictus’ seismic surveys in the eastern Cabora Bassa Basin have already indicated eight promising targets containing an estimated 2.9 trillion cubic feet of gas and 184 million barrels of condensate.
The discovery of the Mukuyu field in 2023 cemented Cabora Bassa as one of Sub-Saharan Africa’s most significant new gas provinces. Following last week’s announcement of the new partnership, Invictus’ stock price more than doubled.
Macmillan welcomed the investment as a turning point for the project, while Sheikh Mansour described the partnership as part of a broader commitment to Africa’s energy security and economic development.
