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Ishemunyoro Chingwere
AUSTRALIA Stock Exchange-listed miner, Invictus Energy, has signed a second gas uptake Memorandum of Understanding (MOU) with Tatanga Energy in a move that further confirms growing confidence in the availability of commercially viable gas at the Muzarabani oil and gas prospect.
The deal, with Tatanga Energy, a local firm, comes on the heels of another uptake deal the Australian miner entered with Sable Chemical Industries to progress 13 billion cubic feet of gas per year in the event of a discovery of commercially viable gas at their prospect.
The new MOU announced yesterday, is for the development and sale of a 500 megawatt (MW) gas project and is envisaged for the supply of up to 36, 5 billion cubic feet of gas per year for the next 20 years from its commencement.
The signing of the two deals, by the independent oil and gas exploration firm, also comes after another milestone that saw the prospect’s potential being upgraded in light of independent results showing a strong case for up to 1,3 billion barrels of oil equivalent (BOE) or alternatively an estimated resource of 206 billion litres of oil.
It is also estimated to contain 8,2 Tcf plus 250 million barrels of conventional gas / condensate (gross mean unrisked) across five horizons while the Msasa Prospect identified under the same permit (SG 4571) is estimated to contain 1,05 Tcf plus 44 million barrels of conventional gas/condensate (gross mean unrisked) across three horizons.
In a notice published yesterday, Invictus advised that the scope of the deal is to cover the power deficit for mines, industrial and other large consumers of power in the country.
There are also prospects for exports to Zambia and Mozambique.
Tatanga itself is already working on other separate Independent Power Producer (IPP) projects in the country, which include two solar PV projects with a 400MW solar photovoltaic park in which it is partnering Masawara Limited and Sable Chemical being its flagship.
“. . . (the MOU signed is) to progress gas supply +/-500 megawatt (MW) gas to power plant in the event of a commercial gas discovery from Special Grant 4571 in Muzarabani.
“Under the MOU, Invictus and Tatanga have agreed to jointly work together and corporate with regards to investigating the economic and commercial viability of supplying natural gas from the Cabora Bassa Project to the proposed Gas to Power Plant which will be sold to the national grid and or to captive clients (i.e mines, industrial and other large consumers of energy in Zimbabwe, Zambia and Mozambique,” reads the statement by Invictus.
Modalities of the proposed Gas to power plant have already been worked and will be built in two phases with the first phase estimated at about 150MW while the second phase will take care of the remaining 350MW.
“The project,” said Invictus, “supports Zimbabwe’s Vision 2030 twin goals of boosting economic growth and driving investment in private and public projects.
Preliminary studies on the ground have already identified a number of suitable locations that provide the ability to supply electricity into the national grid and for export into the Southern Africa Power Pool (SAPP).
In September Invictus announced that it had finished desktop exploratory work and was moving on the ground with the first drilling expected in the first quarter of next year.
Speaking at a news conference after a meeting with representatives of Invictus Energy,
Mines and Mining Development Minister Winston Chitando, said the miner will drill the first borehole of about 3, 5 to 4 kilometres to further define the resource at a cost of between US$15 million to US$20 million.
“Invictus have now reached a stage where they are now preparing to do a seismic survey in the first quarter of 2020, which will enable them to assist in the exact location of the borehole to be drilled,” said Minister Chitando in September.
“As Government, we are very pleased that there is progress towards the roll-out of the Invictus work-plan,” he said.
The developments coming from the Muzarabani oil and gas prospect is sure to excite Government, which has identified mining as one of the key cornerstones that should anchor economic revival and achieve upper middle income earning status by 2030.
Mining alone, has been set a target to generate exports of up to US$12 billion annually from 2023 onwards towards the attainment of Vision 2023.
Bongani Ndlovu