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Pride Mahlangu, Business Reporter
GOVERNMENT has set up a technical committee to undertake the negotiations for a production sharing agreement involving Geo Associates (Pvt) Limited, Invictus Energy’s subsidiary and One-Gas Resources (Pvt) Limited.
Invictus Energy, the Australia Stock Exchange-listed entity is undertaking oil and gas exploration works at the Cabora Bassa project in Muzarabani, Mashonaland Central.
In an update on Wednesday the company said it has made “significant” progress with the Government through numerous meetings and presentations conducted in the past few weeks.
“The company has been informed by the Ministry for Mines and Mining Development that a technical committee has been setup to undertake negotiations for a production sharing agreement (PSA) and held its first meeting last week,” it said.
“The technical committee is chaired by the secretary for Finance and Economic Development with the permanent secretaries for Mines and Mining Development and Energy and Power Development as members together with officials from the Reserve Bank of Zimbabwe (RBZ), Zimbabwe Investment and Development Agency (ZIDA), Office of the President and Cabinet (OPC), Office of the Attorney General and Local Government and Public Works.
“The company and the Government have made significant progress with the legal and fiscal framework consisting of amendments to the Petroleum Act and the execution of a PSA.”
Hopes are high that If the oil project succeeds, it will completely change the complexion of the country’s economy and be a solid anchor towards the attainment of an upper middle-income economy by 2030. Invictus said it has since been invited to make a presentation to the technical committee before the end of March.
It added that its attorneys have been working closely with the legal representatives from the Ministries of Mines and Mining Development and Energy and Power Development on the PSA over the last several months.
“The execution of the PSA is expected to be concluded in the near term and will provide a stable and transparent legal and fiscal framework for the exploration and production of oil and gas in Zimbabwe,” it said.
Updating chiefs in Muzarabani about Cabora Bassa project, Invictus said the upcoming ground activity will commence following the approval of the Environmental Impact Assessment, which is expected to be approved shortly.
“The chiefs have expressed their support for the project and will be hosting a cultural ceremony to welcome the company to the community and bless the project for the upcoming exploration programme,” said Invictus.
Last year, the firm signed a Memorandum of Understanding with Tatanga Energy to explore the business viability of gas supply to a 500MW power plant from its oil and gas project presently being developed.
Invictus Energy recently completed a placement to raise US$1,5 million through rights issue as it seeks partners in the proposed oil project in Muzarabani.
-@pridesinstinctz
Online Reporter
Bongani Ndlovu