Zimbabwe is set to formalise its emerging oil and gas sector with the imminent signing of a Petroleum Production Sharing Agreement (PPSA), as Invictus Energy Ltd says the agreement is in its final stages and expected to be concluded this month.
The development could pave the way for expanded exploration, further appraisal of the Cabora Bassa Project and the possible rollout of an early gas-to-power pilot project.
In a recent update, the Australia-listed exploration company said a final “all party review” of the PPSA had been completed, paving the way for its signing.
The agreement is expected to provide a clear legal and fiscal framework for petroleum operations in Zimbabwe, while also serving as a model contract for future investors in the sector.
Invictus said execution of the PPSA would enable it to proceed with the next phase of its Cabora Bassa Project, where it has made significant gas discoveries at the Mukuyu field.
The company holds exploration rights covering approximately 360,000 hectares under Special Grant 4571 and Exclusive Prospecting Orders 1848 and 1849.
“The completion of the PPSA process represents a significant milestone for the Cabora Bassa Project and the parties involved in its negotiation,” the company said.
It added that the agreement would establish a “stable, transparent and internationally competitive” framework for Zimbabwe’s petroleum industry.
The update on the PPSA comes alongside confirmation that the Environmental Management Agency (EMA) has renewed the project’s Environmental Impact Assessment (EIA) licence until March 2027.
The licence, issued under number L10000179581, allows Geo Associates (Private) Limited, Invictus Energy’s 80 percent-owned subsidiary, to continue operations in compliance with the Environmental Management Act.
The renewed EIA clears the way for ongoing and planned exploration activities, including seismic surveys, drilling and well testing.
It also enables the company to proceed with its high-impact Musuma-1 drilling campaign and further appraisal of the Mukuyu Gas Field following earlier gas-condensate discoveries at Mukuyu-1 and Mukuyu-2.
Invictus said the renewal effectively concludes key permitting requirements for its current exploration phase.
The original environmental assessment, conducted in 2019 by the Scientific and Industrial Research and Development Centre, is one of the most extensive of its kind in Zimbabwe.
It incorporated detailed studies on hydrology, ecology, soils, archaeology and hydrogeology, as well as consultations with local communities, traditional leaders, government ministries and other stakeholders.
Invictus plans to accelerate its activities once the PPSA is signed. These include further appraisal of the Mukuyu gas discoveries and drilling of the Musuma-1 exploration well, which is expected to open up a new play in the eastern part of the basin.
Invictus Managing Director Scott Macmillan said the company was working closely with the Government to finalise the agreement, emphasising the importance of a robust regulatory framework in unlocking the project’s value.
“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,” he said.
Finance Minister Professor Mthuli Ncube described the Cabora Bassa Project as a potentially transformative development for Zimbabwe’s energy sector and the broader economy.
He said the time taken to finalise the agreement reflects efforts to ensure it meets international standards while protecting national interests.
“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 is listed on the Australian Securities Exchange and Victoria Falls Stock Exchange. It operates offices in both Perth and Harare.
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