Invictus Energy Ltd has announced that Geo Associates (Pvt) Ltd has executed the Petroleum Production Sharing Agreement (PPSA) with the Republic of Zimbabwe.
The occasion was marked by a formal signing ceremony in the nation’s capital, Harare, attended by senior representatives of Geo Associates and the Government of the Republic of Zimbabwe.
The PPSA was executed by the Minister of Finance, Economic Development and Investment Promotion, Hon. Mthuli Ncube; the Minister of Mines and Mining Development, Hon. Engineer Polite Kambamura; and the Minister of Energy and Power Development, Hon. July Moyo, on behalf of the Republic of Zimbabwe.
The PPSA establishes a comprehensive and enabling framework to govern petroleum operations across the full lifecycle of the Cabora Bassa Project, spanning exploration, appraisal, development, production and commercialisation activities
The PPSA supersedes the Petroleum Exploration, Development and Production Agreement (PEDPA) previously executed with the Republic of Zimbabwe in March 2021. Importantly, the agreement incorporates a suite of fiscal and non-fiscal incentives designed to support the efficient and accelerated development of the project, including the granting of National Project Status (“NPS”) and Special Economic Zone (“SEZ”) status, investment protection, and contract stability provisions.
These incentives are aimed at enhancing project economics, reducing development costs, facilitating importation of critical equipment and services and accelerating development timelines. The framework also provides for Zimbabwe and its citizens to participate directly in the economic success of the project through an agreed share of project product/profit in addition to existing royalty and corporate taxation arrangements, creating a balanced and mutually beneficial development structure for all stakeholders.
The PPSA further formalises the participation of the Mutapa Investment Fund (the Sovereign Wealth Fund of Zimbabwe), which is already a significant shareholder in Invictus Energy. Mutapa’s inclusion within the framework aligns the interests of the Government of Zimbabwe, local stakeholders and Invictus Energy toward rapid and coordinated development of the Cabora Bassa Project.
“Execution of the Petroleum Production Sharing Agreement represents a landmark milestone for both the Cabora Bassa Project and the broader development of Zimbabwe’s oil and gas industry. “The PPSA establishes a robust, transparent and globally competitive framework that provides longterm certainty for all stakeholders, while creating a strong foundation to accelerate development activities across the basin.
“Importantly, the agreement aligns the interests of Geo Associates, Invictus Energy, One Gas Resources, the Republic of Zimbabwe and the Mutapa Investment Fund in a genuine partnership structure designed to unlock the full value of the Cabora Bassa Project for our shareholders and the people of Zimbabwe. “With this critical framework now in place, the Company is firmly focused on advancing the next phase of exploration, appraisal and development activities, including the upcoming high impact Musuma-1 exploration well,” Invictus CEO and Managing Director Scott Macmillan commented.
“The execution of the PPSA marks a defining milestone in the advancement of Zimbabwe’s petroleum sector and reflects the significant progress made in establishing the foundations for a sustainable upstream oil and gas industry. “The Cabora Bassa Project has already demonstrated the vast potential of the basin through the Mukuyu gas discovery, and the Government remains committed to supporting the continued exploration and appraisal of this strategic national resource. “Through this agreement, Zimbabwe has established a framework that balances investor confidence with national participation and long-term value creation for the country,” The Minister of Mines and Mining Development, Hon. Engineer Polite Kambamura commented.
Geo Associates is the operator and holder of Special Grant 4571 in the Zimbabwe Mukuyu gas-condensate discovery. Geo Associates is 80% owned by Invictus Energy Ltd.
