Online Reporter
Oliver Kazunga
Senior Reporter
INVCTUS Energy has invested about US$100 million since 2022 in exploration of the Cabora Bassa Basin in northern Zimbabwe, accelerating prospects of a major energy shift with potential to boost power generation, revive industry, reduce fuel imports and strengthen long-term economic growth.
The Australia-headquartered company is exploring for oil and gas in Muzarabani and Mbire districts, where it confirmed a significant natural gas and oil discovery in 2023 within the Mukuyu structure.
The Mukuyu discovery, from the Lower and Upper Angwa formations, was ranked the second-largest oil and gas find in Sub-Saharan Africa in 2023, with an estimated 230 million barrels of oil equivalent (mmboe) or 1,3 trillion cubic feet (Tcf) of gas from just two wells drilled in a 200-square-kilometre structure.
Last week, Invictus secured an additional US$10 million capital raise, with attention now shifting to the upcoming Musuma-1 exploration well, which will be critical in determining the basin’s commercial viability.
Invictus managing director, Mr Scott Macmillan, said the cumulative US$100 million investment reflects both confidence in the project and Zimbabwe’s growing appeal as an energy investment destination.
“To date, Invictus has spent approximately US$100 million on the project —and the latest support for the $10 million placement is a strong vote of confidence not only in the company and the project and our upcoming Musuma-1 exploration well, but also in Zimbabwe as an emerging long-term energy investment destination,” he said.
“The placement demonstrates that international and domestic capital are prepared to fund Zimbabwe energy projects, where there is technical progress, regulatory stability and certainty and a credible monetisation pathway.”
Mr Macmillan said investor appetite is being reinforced by policy reforms, including National Project Status and progress towards a Petroleum Production Sharing Agreement (PPSA), which will provide a structured framework for long-term investment.
The Mutapa Investment Fund has been designated as beneficiary of the PPSA profit-sharing arrangement on behalf of the Government.
Beyond capital inflows, the project is already generating domestic economic activity through local procurement, logistics and employment.
“In terms of local economic contribution for the upcoming drilling programme, a material portion of spending associated with drilling, logistics, civil works, accommodation, transport, camp services, security, community engagement and in-country support functions should flow into the local economy,” said Mr Macmillan.
He said more than 80 percent of Invictus’ workforce is Zimbabwean, with over 200 jobs created during seismic campaigns and drilling phases, while further employment is expected as operations expand.
“We have increased the proportion of locals employed during the drilling programmes through training to higher skilled positions and that this participation is expected to increase as operations grow,” Mr Macmillan said.
The immediate focus is Musuma-1, which will be drilled to determine prospectivity in the eastern basin.
If hydrocarbons are confirmed, the well will be logged, tested and evaluated to assess flow rates, reservoir pressure and fluid characteristics.
Mr Macmillan said early production testing could support pilot gas-to-power projects within 12 to 18 months, potentially using existing wells to supply electricity and gather reservoir data.
The second phase will involve seismic studies, appraisal drilling, resource certification and securing gas sales agreements to unlock development finance and full field construction.
“This will allow us to secure development funding and commence construction of the full field development encompassing upstream, midstream and downstream associated industries — this is when peak job generation and activity will occur, followed by revenue generation through taxes, royalties, equity and profit-sharing,” Mr Macmillan said.
He said oil and gas development has a strong multiplier effect, with the potential to generate measurable jobs, state revenues and industrial expansion.
“If Musuma is successful in addition to Mukuyu, the medium-term opportunity could be very significant because it would expand the resource base into a broader basin development story,” said Mr Macmillan.
Invictus has prioritised gas-to-power as the initial commercial pathway, targeting early production for electricity generation and industrial use.
The company has signed agreements with Eureka Gold Mine for up to 50MW of gas-to-power supply and with Mbuyu Energy for a potential 500MW project, aimed at easing Zimbabwe’s power deficit, currently estimated at around 2 200MW.
Besides fostering energy self-sufficiency, President Mnangagwa is on record as saying other potential benefits from the oil and gas discovery include electricity generation, as well as production of liquefied petroleum gas, fertiliser and petro-chemicals.
This has been echoed by Mr Macmillan.
“In the medium term, a successful Musuma outcome could unlock pilot gas-to-power, expanded industrial gas supply and deeper downstream opportunities including fertiliser production, transport fuel substitution and manufacturing feedstock,” he said.
Mr Macmillan said while the final scale will depend on certified resources and infrastructure, success at Musuma would significantly strengthen the case for basin-wide development rather than a single-field project.
To date, Invictus’ US$100 million investment positions Cabora Bassa as one of Zimbabwe’s most significant private-sector energy developments, with potential to reshape the country’s industrial and economic trajectory.
Economist Ms Chipo Warikandwa said the Cabora Bassa Basin project is potentially a structural shift rather than a sector story.
“If commercial viability is confirmed, Zimbabwe could move from chronic power deficits to energy-driven industrial expansion, with significant gains in growth, exports and fiscal stability — but only if resources translate into financed, scalable production,” she said.
Lest we forget, Australian companies are notoriously known for leaving abruptly after raising people’s hopes. The platinum refinery in Makwiro that was built by BHP a few decades ago serves as an example. Zimbabwe has been sold economic duds before. Russia had Great Dyke Minerals and Alrosa Diamonds. Karo Resources is also limping along in Mhondoro.