Online Reporter
Golden Sibanda, Zimpapers Business Hub
AUSTRALIA Stock Exchange-listed oil and gas explorer Invictus Energy, which has discovered natural gas and condensate (light oil) in northern Zimbabwe, has completed its Petroleum Production Sharing Agreement (PPSA) with the Government.
The PPSA is designed to ensure equitable sharing of value generated from the Cabora Bassa Project and will provide a robust governing framework for Zimbabwe’s emerging oil and gas sector.
President Mnangagwa has consistently expressed strong support for the Invictus Energy project, describing it as a potential “game changer” that could deliver energy independence and drive significant economic growth for Zimbabwe.
Natural gas and light oil condensate are excellent, flexible fuels for power generation. Against this background, the Government granted the Cabora Bassa project National Project Status (NPS), unlocking fiscal and non-fiscal incentives such as tax holidays and reduced corporate tax rates to accelerate development.
The untapped oil and gas deposits present unique and competitive investment opportunities, given the industry’s potential downstream linkages. Other benefits highlighted by the President include electricity generation, production of liquid petroleum, liquefied petroleum gas (LPG), fertiliser manufacturing and petrochemicals.
The PPSA is expected to be formally executed in January 2026, paving the way for the next phase of Invictus Energy’s work programme. The agreement establishes a contractual relationship between the Government and the company, outlining rights, responsibilities and financial mechanisms for exploration and extraction.
This development comes as Invictus, which is also listed on Zimbabwe’s Victoria Falls Stock Exchange, recently relocated its headquarters from Australia to Harare to be closer to its massive Cabora Bassa oil and gas project. The move supports upcoming exploration drilling and a gas-to-power pilot project.
“Completion of the PPSA process represents a significant milestone for the Cabora Bassa Project and establishes a stable, transparent and internationally competitive legal and fiscal framework under which petroleum operations will be conducted,” Invictus said.
With the PPSA expected to be executed in January, Invictus plans to advance its high-impact work programme in the Cabora Bassa Basin, including appraisal of the Mukuyu gas field following the Mukuyu-1 and Mukuyu-2 gas-condensate discoveries. The agreement will also enable drilling of the Musuma-1 exploration well, aimed at unlocking additional resources in the eastern portion of the basin.
Invictus managing director Scott Macmillan said the PPSA completion was a critical enabler for ongoing investment and development planning. We are very pleased to have concluded the Petroleum Production Sharing Agreement process and to have a competitive and comprehensive framework in place to govern the future development of the Cabora Bassa Project,” he said.
Invictus Energy is opening one of the last untested large frontier rift basins in onshore Africa — the Cabora Bassa Basin in Mashonaland Central Province — through a high-impact exploration programme. The Mukuyu gas field contains multiple hydrocarbon-bearing reservoirs with high-quality gas in the Upper and Lower Angwa formations.
The Mukuyu structure spans over 200 square kilometres with vertical relief of 1 400 metres. Significant gas columns were observed at the base of both Mukuyu-1 and Mukuyu-2 wells, with no water legs encountered to date
The Mukuyu discovery considerably de-risks future exploration and development of the Cabora Bassa Project. Further 3D seismic data is being acquired to determine resource scale and assist in high-grading core development areas. Simultaneous activities include post-well studies, reservoir engineering, well design refinements, appraisal drilling and well testing.
Invictus will adopt a phased approach to development, starting with a pilot project to provide proof of concept ahead of full field development.
Current estimates for prospective resources in the Eastern Margin alone stand at 2.9 trillion cubic feet (Tcf) of gas and 184 million barrels of condensate (gross mean unrisked), with potential oil resources in the basin margin. The entire basin could hold over 20 Tcf gas equivalent.
Qatar-based investment firm Al Mansour Holdings (AMH) recently acquired a significant stake in Invictus Energy. In August 2025, AMH agreed to purchase a 19.9 percent equity stake for AUD$37.8 million and committed up to US$500 million in conditional future funding to bring the Cabora Bassa project into commercial production.
Invictus Energy’s exploration area in the Cabora Bassa Basin covers approximately 360 000 hectares, encompassing three contiguous licence areas — Special Grant (SG) 4571 and Exclusive Prospecting Orders (EPOs) 1848 and 1849 — granting Invictus full exploration rights across the basin.
