The government of Zimbabwe is set to benefit from the proceeds of oil and gas deposits discovered by Invictus Energy in the Mukuyu fields. The company is finalising a Petroleum Production Share Agreement (PPSA) with the government, which will establish the legislative and financial framework for sharing the benefits of the developed resources.
The PPSA is expected to provide a stable and transparent legal and fiscal framework for the Cabora Bassa Project, which could attract additional international parties for further investment. The proceeds received by the government will be used to finance critical public expenditure programs such as infrastructure development.
Invictus Energy has also updated its Memorandum of Understanding with Mbuyu Energy for the sale and supply of gas to power a 500-megawart gas-to-power project, which could potentially generate up to 1000MW. This project aims to support the integration of renewable energy sources into the national grid and Southern Africa Power Pool (SAPP).
The company has made significant discoveries in the Mukuyu field transforming it from a prospect to a proven gas-condensate field. The gas produced from Mukuyu is of high quality, requiring minimal processing for commercialisation.
Invictus Energy’s upcoming working program include a well test at Mukuyu 2, preparation for 3D seismic surveys, and planning for a new high impact exploration well.
The ongoing support from new and existing investors has been crucial for Invictus Energy, with the company successfully raising approximately AU$16.5 million since last December through a Private Purchasing and Share Purchase Plan. This financial backing will play a key role in supporting the upcoming activities and expansion of resources.
Invictus Energy expressed gratitude for the unwavering commitment of its stakeholders, highlighting how their support motivates the team to enhance resources and deliver value to shareholders. The company also acknowledged the efforts of contractors and various stakeholders who have contributed to their success.
Wood Mackenzie recognised Mukuyu as the second largest discovery in sub-Saharan Africa, estimating it to be a 230 million boe resource. Despite this impressive assessment, Invictus remains optimistic about increasing this figure through their future work program at Mukuyu and exploration targets in the Cabora Bassa basin. The company aims to significantly boost the resource estimate and enhance value for both shareholders and the organisation as a whole.
Text: Natasha Munyukwa