| Online Writer
The Muzarabani oil and gas project has entered a new phase of implementation following the signing of a consolidated Production and Profit-Sharing Agreement (PPSA) between the Government and Invictus Energy, marking a significant milestone in the country’s petroleum sector.
The project has been granted National Project Status by the Ministry of Finance, Investment Promotion and Economic Development, a move expected to unlock new opportunities for investment.
The agreement sets out the terms for revenue sharing between the Government and Invictus Energy, providing a predictable and stable legal and fiscal regime for the project.
As part of the agreement, Government, through the Sovereign Wealth Fund of Zimbabwe, will hold a 10 percent equity stake in the project during the exploration phase without contributing cash. The State also retains a back-in-right to acquire its share should the project achieve commercial discovery.
Invictus Energy has already confirmed the presence of oil and gas in the Muzarabani basin, following extensive exploration activities. In 2023, the company drilled two wildcat wells, which resulted in the landmark Mukuyu gas-condensate discovery.
Building on this success, Invictus plans to drill the Masomo One well, targeting a gas prospect east of the Mukuyu site to unlock additional resources and strengthen Zimbabwe’s energy security.
Estimates suggest that the Muzarabani basin could hold up to 9.25 trillion cubic feet of gas and nearly 300 million barrels of oil. Officials say the development has the potential to transform Zimbabwe’s energy landscape by reducing reliance on fuel imports, creating jobs, generating foreign currency, and stimulating downstream industries. |
Online Reporter
