Andrew
Online Reporter
INVICTUS Energy has been granted a special licence to increase gas and oil exploration land from 100 000 hectares to over 700 000 hectares, with the Sovereign Wealth Fund of Zimbabwe (SWFZ) entitled to 10 percent equity of the project.
In a statement, Invictus Energy said it is now concluding the Petroleum Production Sharing Agreement with Government, which will govern the project.
“Invictus-owned subsidiary Geo Associates (Pvt) Ltd (Geo Associates) and the Sovereign Wealth Fund of Zimbabwe (SWFZ) have executed a Head of Agreement (HoA) to increase Special Grant 4571 (SG 4571) licence area from 100 000 to 709 300 hectares,” the statement reads in part.
Invictus said under the HoA, the area will be amalgamated with the SWFZ’s MSCOO3 Cabora Bassa South Reserved area to cover the entire Cabora Bassa Basin in Zimbabwe.
The SG 4571 area increase is now awaiting a procedural Government Gazette.
“Geo Associates and the Republic of Zimbabwe will also conclude the Petroleum Production Sharing Agreement, which will encompass the legal and fiscal provision to govern the project and development of any discovered resource.
“The HoA executed between Geo Associates and the SWFZ will amalgamate the respective licence areas into the extended SG4571 licence area.
“The SWFZ will be entitled to a ten percent equity back in right to the extended SG4571 which is exercisable within six months post positive final investment decision to develop any discoverable resource within the licence,” said the company.
Online Reporter