Published: 2 hours ago

The Muzarabani oil and gas project has advanced into a new phase following the signing of a consolidated Production and Profit-Sharing Agreement (PPSA) between the Government and Invictus Energy, a landmark development for Zimbabwe's petroleum sector.

The agreement, which outlines the revenue-sharing framework, establishes a predictable and stable legal and fiscal regime for the project. The Ministry of Finance, Investment Promotion and Economic Development has also granted the venture National Project Status, a move expected to attract fresh investment.

Under the PPSA, the Government, through the Sovereign Wealth Fund of Zimbabwe, will hold a 10 percent equity stake in the exploration phase without any cash contribution. The State also retains a back-in-right to acquire its full share should a commercial discovery be confirmed.

Invictus Energy has already verified the presence of oil and gas in the Muzarabani basin. In 2023, the company drilled two exploratory wells, leading to the landmark Mukuyu gas-condensate discovery. Building on this, the firm plans to drill the Masomo One well east of Mukuyu, with the aim of unlocking additional resources.

Preliminary estimates suggest the basin could hold up to 9.25 trillion cubic feet of gas and nearly 300 million barrels of oil. Officials say the development has the potential to reshape Zimbabwe's energy landscape by cutting fuel imports, generating foreign currency, creating jobs, and spurring downstream industries.
- online

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