Invictus Simplifies Zim Oil & Gas Framework

Staff Reporter

Invictus Energy, an Australian firm, has announced that it will combine its existing Petroleum Exploration Development and Production Agreement (PEDPA) with its Petroleum Production Sharing Agreement (PPSA) with the Zimbabwean government.

This consolidation aims to expedite project implementation following a new discovery.

According to Invictus, merging the agreements will streamline administrative procedures and enhance governance as the Cabora Bassa Project advances towards development. The unified agreement will provide a stable, transparent legal and fiscal framework for oil and gas exploration and production in Zimbabwe.

The decision follows a visit last month by the Invictus board to the Cabora Bassa Gas and Oil Project, situated in the Muzarabani district of Mashonaland Central Province.

In a statement, Invictus reported:
"At the end of March, the Invictus Energy board of directors completed a productive in-country visit to Zimbabwe. The delegation met with a broad range of key stakeholders, including senior government representatives, the Mutapa Investment Fund, traditional leaders, local investors, potential offtake partners, and strategic project partners."

The statement further elaborated:
"A major focus of the visit was to advance the finalisation of the PPSA. Following a detailed review of the draft agreement by Invictus, external legal counsel to the Republic of Zimbabwe, and relevant line ministries, it was agreed to amalgamate the PPSA and the existing Petroleum Exploration Development and Production Agreement into a single, streamlined agreement."

Invictus stated that this unification significantly improves the regulatory and commercial structure of the Cabora Bassa Project.

"While this strategic decision has resulted in an adjustment to the original timeline, it will deliver substantial long-term benefits over the project’s life by simplifying administrative processes and strengthening governance as the project progresses towards the development phase," the company explained.

"The updated agreement is now in its final stages of preparation and, under the direction of the Zimbabwean president, is being fast-tracked for execution as soon as possible. This decisive action underscores the Zimbabwean Government’s commitment to enabling the timely and successful development of the Cabora Bassa Project."

This decision coincides with Invictus's discovery of another substantial gas and oil resource at its Musuma-1 well, the second site within the Cabora Bassa Project following the Mukuyu find.

Invictus announced:
"Musuma-1 has been confirmed as the first high-impact exploration well to be drilled outside the Mukuyu gas-condensate discovery area, targeting a new play type in the Cabora Bassa Basin. The well has the potential to unlock a substantial new resource base in the eastern portion of the licensed area, where several high-potential prospects have been identified from the CB23 seismic survey."

The company added:
"The Musuma prospect hosts significant resource potential, targeting 1.2 Tcf (trillion cubic feet) of gas and 73 million barrels of condensate (gross mean unrisked). These estimates were defined following interpretation of the CB23 seismic survey, which matured the eastern prospects."