AUSTRALIAN energy firm, Invictus Energy Limited, will amalgamate its Petroleum Exploration Development and Production Agreement (PEDPA) and Petroleum Production Sharing Agreement (PPSA) with the government and fast-track its implementation amid a new discovery.
According to Invictus, the merging of the agreements is designed to simplify the administrative processes and strengthen the governance as the Cabora Bassa Project progresses toward development.
The agreement provides a stable, transparent, legal and fiscal framework for the exploration and production of oil and gas in Zimbabwe.
The decision was reached after the Invictus board visited its Cabora Bassa Gas and Oil Project, located in the Muzarabani district of the Mashonaland Central Province, last month.
“At the end of March, the Invictus Energy board of directors completed a productive in-country visit to Zimbabwe. The delegation met with a broad range of key stakeholders, including senior government representatives, the Mutapa Investment Fund, traditional leaders, local investors, potential offtake partners and strategic project partners,” Invictus said in a statement.
“A major focus of the visit was to advance the finalisation of the PPSA. Following a detailed review of the draft agreement by Invictus, external legal counsel to the Republic of Zimbabwe and relevant line ministries, it was agreed to amalgamate the PPSA and the existing Petroleum Exploration Development and Production Agreement into a single, streamlined agreement.”
The firm said this unification represented a significant enhancement to the regulatory and commercial framework of the Cabora Bassa Project.
“While this strategic decision has resulted in an adjustment to the original timeline, it will deliver substantial long-term benefits over the project life by simplifying the administrative processes and strengthening governance as the project progresses toward the development phase,” Invictus said.
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“The updated agreement is now in its final stages of preparation and, under the direction of the Zimbabwean president, is being fast-tracked for execution as soon as possible. This decisive action underscores the Zimbabwean Government’s commitment to enabling the timely and successful development of the Cabora Bassa Project.”
This decision comes at a time when Invictus found another significant gas and oil resource at its Musuma-1 well, a second site within the Cabora Bassa Project, after Mukuyu.
“Musuma-1 has been confirmed as the first high-impact exploration well to be drilled outside the Mukuyu gas-condensate discovery area, targeting a new play type in the Cabora Bassa Basin. The well has the potential to unlock a substantial new resource base in the eastern portion of the licensed area, where several high-potential prospects have been identified from the CB23 seismic survey,” Invictus said.
“The Musuma prospect hosts significant resource potential, targeting 1,2 Tcf (trillion cubic feet) of gas and 73 million barrels of condensate (gross mean unrisked). These estimates were defined following interpretation of the CB23 seismic survey, which matured the eastern margin area of the company’s Cabora Bassa acreage position.”
