Online Reporter
Nqobile Bhebhe, Senior Business Writer
IN a major policy breakthrough poised to enhance Zimbabwe’s investment appeal in the oil and gas sector, the Government and Invictus Energy have agreed to consolidate the Petroleum Production Sharing Agreement (PPSA) and the Petroleum Exploration Development and Production Agreement (Pedpa) into a unified and streamlined legal framework.
This landmark decision was reached during a high-level in-country visit by the Invictus Energy Board of Directors at the end of March.
The delegation held extensive engagements with senior Government officials, the Mutapa Investment Fund, traditional leaders, local investors and key project partners.
Their discussions centred on accelerating progress in the Cabora Bassa Project, Zimbabwe’s flagship petroleum exploration initiative.
Following in-depth legal and technical consultations involving Invictus Energy, external legal counsel to Zimbabwe and relevant Government ministries, all parties unanimously agreed that amalgamating the PPSA and Pedpa would provide long-term regulatory clarity and administrative efficiency.
The consolidated agreement is expected to streamline approval processes, reduce bureaucratic duplication and enhance governance as the project transitions from exploration to commercial production.
While the move has prompted a slight revision in project timelines, it is viewed as a strategic step that positions Zimbabwe as a regional leader in petroleum regulation.
“Separately, the consolidation of the Petroleum Exploration Development and Production Agreement and the Petroleum Production Sharing Agreement provides a clearer path forward and reflects the shared commitment to enabling a successful development,” said Invictus Energy managing director, Mr Scott Macmillan in an update.
“Our recent site visit to Zimbabwe marks another important milestone in the development of the Cabora Bassa Project and reinforces the strong support from all levels of Government and the broader Zimbabwean community.”
During the visit, Invictus also confirmed Musuma-1 as the next high-impact exploration well, following the landmark Mukuyu gas discovery.
“The selection of Musuma-1 as the next high-impact exploration well beyond the Mukuyu discovery, is a major achievement for Invictus. Musuma is a technically compelling prospect, underpinned by multiple lines of seismic evidence, including consistent flat spots across different surveys, which are indicative of hydrocarbons,” said Mr Macmillan.
“The well has been designed as a low-cost, low-risk vertical well to test a shallow target with significant upside.”
Mr Macmillan added that success at Musuma could unlock a new play fairway, substantially expand the project’s resource base and fast-track the transition from exploration to commercial development.
The unified agreement is also expected to unlock further investment opportunities in the Cabora Bassa Basin, sending a strong signal to global energy markets that Zimbabwe is committed to managing large-scale energy projects with transparency, professionalism and stability.
In 2023, Invictus Energy confirmed significant natural gas and oil reserves in the Cabora Bassa Basin in Mbire, Mashonaland Central Province.
These discoveries marked a substantial leap towards energy security, opening up new avenues for economic growth through the development of downstream industries, job creation, increased export earnings and higher Government revenue.
There is growing optimism that early monetisation of the oil and gas finds could offer meaningful relief to Zimbabwe, which faces a national power deficit, peaking at 2 200MW, especially during the winter months.
The deficit, often met through costly imports, has resulted in prolonged power outages that disrupt both business operations and household life.
To address the energy gap, Invictus has signed two separate agreements with Eureka Gold Mine and Mbuyu Energy for gas-to-power projects, initiatives expected to create further job opportunities beyond primary production.
The two gas-to-power projects will see Invictus supplying 12MW to Eureka Gold Mine, and this figure can be raised to 50MW, while a local firm in the energy space, Mbuyu Energy, signed an offtake agreement with Invictus for 500MW.
The agreement with Mbuyu Energy project holds the potential to scale up to 1 000MW, which would require approximately 1,4 trillion cubic feet of natural gas.
This level of power generation is expected to relieve pressure on Zimbabwe’s overburdened electricity grid and support the Southern African Power Pool, while also enabling better integration of renewable energy sources.
In a further vote of confidence, global petroleum research firm, Wood Mackenzie, classified the Mukuyu gas discovery as the second-largest petroleum find in Africa in 2023.
The estimated resource at Mukuyu stands at 230 million barrels of oil, equivalent to 1,3 trillion cubic feet of gas.
With a structural closure of over 200 square kilometres, independent estimates suggest the Mukuyu field could hold up to 20 trillion cubic feet of gas and 845 million barrels of conventional gas condensate.
