Online Reporter
Nelson Gahadza
Senior Business Reporter
GOVERNMENT has sent an updated draft of the Petroleum Production Sharing Agreement (PPSA) and consent to National Project Status for Invictus’ oil and gas project north of Zimbabwe, marking another key milestone in advancing the project.
According to a statement from the Australian company, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said the Cabora Bassa Project is a nationally significant development, and the Government is working closely with Invictus to finalise the PPSA and ensure a transparent, fair and commercially sound agreement.
“The Government looks forward to the successful formalisation of National Project Status and the long-term benefits the project will bring to Zimbabwe,” Prof Ncube is quoted as saying in the statement.
Invictus, which is developing oil and gas assets in Mbire and Muzarabani districts, Mashonaland Central Province, commenced exploration in 2022 and has spent more than US$80 million on the Cabora Bassa Basin project.
It announced the discovery of condensate in the prospective area.
Under the PPSA, the Government will have a 40 percent share of the production, whose licence covers Special Grants 4571, 1848 and 1849.
In the latest update, Invictus said following a previous announcement regarding the decision by the Government to consolidate the Petroleum Exploration Development and Production Agreement (PEDPA) and the PPSA into a single, streamlined agreement, the company had now received the updated draft of the amalgamated documents.
“The company has been working closely and constructively with the relevant line ministries to finalise the terms of the PPSA.
“While the process has taken slightly longer than initially anticipated due to the introduction of additional provisions by external legal advisors, all parties remain committed to finalising a robust, balanced, and transparent agreement that meets international standards and supports long-term success,” reads part of the statement.
In parallel, Invictus said the Ministry of Finance, Economic Development and Investment Promotion had agreed to provide National Project Status (NPS) to Invictus’ Cabora Bassa Project, recognising its potential to deliver broad-based economic benefits, attract foreign investment, and create employment.
“The company is currently completing the formal process required for the official granting of National Project Status, which will unlock a suite of fiscal and non-fiscal incentives including duty exemptions, fast-tracked permitting, and streamlined access to key infrastructure and services.
“A series of stakeholder meetings is scheduled to conclude the PPSA and associated instruments,” the company said.
National Project Status is a designation given to large scale projects with significant national impact and economic benefits. This status allows investors to benefit from incentives such as duty rebates on imported equipment and raw materials, tax holidays and exemptions from non-resident taxes.
Invictus managing director Mr Scott Macmillan said the company was greatly encouraged by the Government’s continued support and the positive momentum towards finalising the PPSA.
“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,” he said.
Mr Macmillan said the Government of Zimbabwe had reiterated its strong support for the project and its commitment to putting in place a fair and durable commercial framework.
“Invictus is progressing the contracting and procurement of long lead items and critical services in preparation for the Musuma-1 exploration well, scheduled to spud in the second half of 2025,” he said.
Invictus managing director Mr Scott Macmillan said the company was greatly encouraged by the Government’s continued support and the positive momentum towards finalising the PPSA.
“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,” he said.
Mr Macmillan said the Government of Zimbabwe had reiterated its strong support for the project and its commitment to putting in place a fair and durable commercial framework.
“Invictus is progressing the contracting and procurement of long lead items and critical services in preparation for the Musuma-1 exploration well, scheduled to spud in the second half of 2025,” he said.
According to the statement, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said the Cabora Bassa Project is a nationally significant development, and the Government is working closely with Invictus to finalise the PPSA and ensure a transparent, fair and commercially sound agreement.
“The Government looks forward to the successful formalisation of National Project Status and the long-term benefits the project will bring to Zimbabwe,” he said.
