Sundaymail Editor
Business Reporter
INVICTUS ENERGY, an Australia Stock Exchange (ASX)-listed oil and gas exploration junior, has commended the Government for giving it maximum policy support in its quest to develop the petroleum project in Muzarabani, Mashonaland Central.
The firm has so far registered notable milestones.
Its special grant was renewed, while a petroleum exploration development and production agreement (PEDPA) has since been signed with Government.
Further, an environmental impact assessment and seismic studies have been conducted.
Contracts for a drilling rig as well as management have been concluded.
Manufacturing of key equipment is now complete and would soon be shipped into the country once the drilling rig — secured from Exalo Drilling — is confirmed to be on its way to the country.
Overall, there has been significant progress in mobilising funding and equipment needed to begin drilling by June this year.
Invictus managing director Mr Scott MacMillan told The Sunday Mail Business that Government support was critical in developing projects and luring investment, as investors always have a choice of investing elsewhere.
“The Government has been very supportive and proactive, which will ensure that the development pathway is clear and the project can be monetised and make a contribution to the economy,” said Mr McMillan.
“Oil and gas is a risky business, which has both below ground (geological) and above ground (political, geographic and fiscal risks) which need to be considered when investing. As the saying goes, ‘money goes where it is welcomed and stays where it is looked after’ . . .
“We have seen delays in oil and gas development in some jurisdictions, even with larger commercial discoveries having been made, due to poor policies and slow approval processes, and resources remain trapped in the ground and no one benefits — no capital investment, jobs, taxes, royalties.”
A commercial discovery, he said, will have a huge positive impact on communities in the area.
The construction of facilities and the pipeline, including production of fuels is expected to create jobs.
Invictus is focused on providing water, education and health with the help of communities.
There will be significant benefits through indirect downstream industries and new jobs. The Government is expected to benefit from royalties, taxes, including production and profit sharing.
Communities in Muzarabani believe the project should prioritise locals and help develop key infrastructure such as dams, roads, bridges, schools and clinics.
“Jobs should be made available first to locals while other development projects should come through as a result of this initiative.
“We welcome this project, but we also have a lot of aspirations.
“We must not repeat what happened in Chiadzwa where people from other places were first to benefit ( from the diamond rush) and go away to develop and build nice houses in plush suburbs,” said Chief Muzarabani.
The policy support given by the Government, is in keeping with the Second Republic’s “Zimbabwe is open for business” mantra.
The Government plans to grow the mining sector’s contribution to the economy to US$12 billion by 2023, from US$2,7 billion in 2017. It is a key stepping stone towards transforming Zimbabwe into a prosperous and empowered upper middle-income economy by 2030.
The Muzarabani prospect is considered to be the largest undrilled conventional oil and gas prospect onshore in Africa and could host prospective resources of about 9,25 trillion cubic feet and 294 million barrels of gas condensate.
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