Oil, gas project to slash fuel import bill

Zimbabwe is moving closer to reducing its annual fuel import bill of more than US$1 billion as exploration activities in the Cabora Bassa Basin continue to advance, strengthening hopes for improved energy security, industrial development and job creation.

After decades of relying heavily on imported petroleum products, the country has confirmed the existence of a working petroleum system in the Cabora Bassa Basin following the drilling of the Mukuyu-1 and Mukuyu-2 exploration wells.

Attention is now turning to the planned Musuma-1 exploration well, which is expected to be drilled during the second half of 2026.

The well will target an estimated 1.2 trillion cubic feet of natural gas and 73 million barrels of condensate, a light hydrocarbon that can be processed into transport fuels and petrochemical products.

The exploration programme forms part of Zimbabwe's broader strategy to develop domestic hydrocarbon resources and reduce reliance on imported fuel, which has historically placed significant pressure on the country's foreign currency reserves.

Speaking during the Coal, Oil and Gas Symposium held on the sidelines of the Chamber of Mines of Zimbabwe Annual Conference in Victoria Falls, Chief Director for Mining Development Engineer Leon Godza said the country had made important progress towards establishing a viable petroleum industry.

Godza highlighted the recent signing of the Petroleum Production Sharing Agreement (PPSA) on May 28 as a major milestone for the sector.

The agreement, the first of its kind in Zimbabwe, grants the project National Project Status and Special Economic Zone status while providing for government participation through the Mutapa Investment Fund.

"The agreement confers national project status and Special Economic Zone status and it embeds State participation through the Mutapa Investment Fund so that Zimbabwe and her citizens share directly in the upside. It is the first framework of its kind in our nation's history," Godza said.

According to government officials, the agreement establishes a stable and internationally competitive legal and fiscal framework governing petroleum activities from exploration through to commercial production.

Authorities believe that successful development of the Cabora Bassa Basin could significantly reduce fuel import costs while creating opportunities for downstream industries linked to gas processing, petrochemicals and power generation.

Godza said the government's broader policy direction is increasingly focused on value addition and beneficiation rather than exporting raw resources.

"The throughline of this overview is a single, deliberate movement: from raw extraction to integrated value. Coal remains our anchor and is being beneficiated; coalbed methane is the near-term gas prize; and Cabora Bassa opens an entirely new petroleum frontier," he said.

Industry analysts say the discovery and eventual commercial production of hydrocarbons could have far-reaching implications for Zimbabwe's economy, potentially reducing fuel import dependence, improving the balance of payments and stimulating investment in related sectors.

However, significant work remains before commercial production can begin, including further exploration, resource appraisal, infrastructure development and securing financing for production facilities.

Even so, the progress achieved so far has fuelled optimism that Zimbabwe could be on the verge of becoming a producer of oil and gas for the first time in its history, marking a potentially transformative chapter in the country's energy sector development.