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Invictus Energy to get National Project Status
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The Zimbabwean government has taken a significant step toward advancing the country's first major oil and gas development after issuing an updated draft of the Petroleum Production Sharing Agreement (PPSA) and confirming its intention to grant National Project Status to Invictus Energy's Cabora Bassa project.
The milestone was announced in a statement by Australian exploration company Invictus Energy, which is spearheading the multi-million-dollar venture in the Cabora Bassa Basin, located in Mbire and Muzarabani districts, Mashonaland Central Province.
According to Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, the project is of national significance and is expected to bring wide-ranging economic benefits.
"The Government looks forward to the successful formalisation of National Project Status and the long-term benefits the project will bring to Zimbabwe," said Prof Ncube, as quoted in Invictus' official update.
The PPSA, which consolidates the earlier Petroleum Exploration Development and Production Agreement (PEDPA), will regulate how resources and revenue are shared between the Government and Invictus. Under the proposed terms, Zimbabwe will receive a 40% production share from the project, which covers Special Grants 4571, 1848, and 1849.
Invictus has already invested over US$80 million in exploration and operations since beginning activity in 2022. The company previously confirmed the presence of condensate and is now gearing up for the drilling of the Musuma-1 exploration well, scheduled for the second half of 2025.
Invictus Managing Director Scott Macmillan welcomed the latest government backing.
"The Ministry of Finance's agreement to provide National Project Status is a key milestone, and we look forward to completing the formalities in due course. We remain on track with preparations for Musuma-1 and are excited about the next phase of activity at Cabora Bassa," said Macmillan.
National Project Status is awarded to large-scale projects deemed to have high economic and developmental impact. It comes with a suite of fiscal and non-fiscal incentives, such as duty exemptions, fast-tracked permitting, and easier access to critical infrastructure and services.
Macmillan noted that the formal process to secure this status is currently underway, alongside final PPSA negotiations. He confirmed that the company is also in the process of contracting and procuring long-lead items and critical services in anticipation of upcoming drilling activity.
Invictus said the process of finalising the PPSA took slightly longer than expected due to the inclusion of new clauses proposed by external legal advisors, but all parties remain committed to achieving a fair and internationally competitive agreement.
Stakeholder meetings are scheduled to wrap up the legal formalities in the coming weeks.
The Cabora Bassa project marks a pivotal moment in Zimbabwe's push to tap into hydrocarbon resources and attract long-term foreign direct investment, especially as the country seeks to diversify its economy and reduce energy imports.
The milestone was announced in a statement by Australian exploration company Invictus Energy, which is spearheading the multi-million-dollar venture in the Cabora Bassa Basin, located in Mbire and Muzarabani districts, Mashonaland Central Province.
According to Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, the project is of national significance and is expected to bring wide-ranging economic benefits.
"The Government looks forward to the successful formalisation of National Project Status and the long-term benefits the project will bring to Zimbabwe," said Prof Ncube, as quoted in Invictus' official update.
The PPSA, which consolidates the earlier Petroleum Exploration Development and Production Agreement (PEDPA), will regulate how resources and revenue are shared between the Government and Invictus. Under the proposed terms, Zimbabwe will receive a 40% production share from the project, which covers Special Grants 4571, 1848, and 1849.
Invictus has already invested over US$80 million in exploration and operations since beginning activity in 2022. The company previously confirmed the presence of condensate and is now gearing up for the drilling of the Musuma-1 exploration well, scheduled for the second half of 2025.
"The Ministry of Finance's agreement to provide National Project Status is a key milestone, and we look forward to completing the formalities in due course. We remain on track with preparations for Musuma-1 and are excited about the next phase of activity at Cabora Bassa," said Macmillan.
National Project Status is awarded to large-scale projects deemed to have high economic and developmental impact. It comes with a suite of fiscal and non-fiscal incentives, such as duty exemptions, fast-tracked permitting, and easier access to critical infrastructure and services.
Macmillan noted that the formal process to secure this status is currently underway, alongside final PPSA negotiations. He confirmed that the company is also in the process of contracting and procuring long-lead items and critical services in anticipation of upcoming drilling activity.
Invictus said the process of finalising the PPSA took slightly longer than expected due to the inclusion of new clauses proposed by external legal advisors, but all parties remain committed to achieving a fair and internationally competitive agreement.
Stakeholder meetings are scheduled to wrap up the legal formalities in the coming weeks.
The Cabora Bassa project marks a pivotal moment in Zimbabwe's push to tap into hydrocarbon resources and attract long-term foreign direct investment, especially as the country seeks to diversify its economy and reduce energy imports.
Source - the herald
