Invictus Energy has terminated its partnership with Qatar-based Al Mansour Holdings (AMH), ending a deal that was expected to underpin funding for its flagship Muzarabani gas project.
The Australian-listed explorer said it pulled out after failing to agree on key commercial and governance terms, describing AMH’s demands as “unacceptable and non-commercial.” Invictus added that some of the proposed provisions were inconsistent with Australian stock exchange and regulatory requirements.
The decision brings to a close months of negotiations that had seen AMH acquire a 19.9% stake in Invictus and commit, conditionally, up to US$500 million in future funding to support development of the Cabora Bassa gas project in northern Zimbabwe.
“Following extensive discussions, the parties have been unable to reach an agreement on a suitable structure for the revised transaction,” Invictus said in a notice to ASX.
“The company advises that the terms and conditions being sought by AMH were not acceptable to Invictus, including certain proposed provisions which are contrary to applicable ASX Listing Rules and ASIC regulatory requirements and unacceptable and non-commercial terms.”
Invictus said it had now ceased all discussions with the Qatari group and would not pursue any further transactions with AMH.
“It has also become apparent to Invictus that AMH does not intend to satisfy its contractual obligations under the Subscription Agreement,” Invictus said.
“In light of AMH's conduct, which Invictus considers constitutes a repudiation of the Subscription Agreement, Invictus has elected to accept the repudiation and terminate the Subscription Agreement with immediate effect.”
- Zimbabwe fall to Afghanistan
- Zimbabwe fall to Afghanistan
- Overview: Zimbabwe’s 2021 sporting heroes and villains
- Muzarabani denied UAE clearance
Keep Reading
The collapse of the deal raises fresh questions over the pace of progress at Muzarabani, where Invictus announced a potential gas discovery in December 2023. The company still needs to drill further wells to confirm volumes and commercial viability — work that was expected to be funded, in part, through the Qatari partnership.
Invictus retains an 80% operating interest in the Cabora Bassa project, with the remaining 20% held by One Gas Resources. Negotiations with the Zimbabwean government over a Production Sharing Agreement, including a 10% State stake in the event of commercial production, are ongoing.
Invictus said it was now engaging alternative strategic and funding partners as it seeks to advance the project following the breakdown of the AMH deal.
“While the company is disappointed that it has not been possible to conclude the strategic investment under the Subscription Agreement or agree terms with AMH for the Revised Transaction, the board believes this outcome is in the best interests of Invictus and its shareholders,” it said.
“The board considers that terminating all discussions was necessary to protect the company’s assets, governance framework, and the interests of shareholders, and to ensure continued compliance with Australian regulatory requirements and the company’s governance standards.
“The company remains focused on advancing its core asset portfolio in the Cabora Bassa Basin and continues to actively engage with a number of alternative strategic and funding counterparties in addition to potential industry partners. The board is encouraged by the level of interest being received and believes the company is well-positioned to progress value-accretive transactions and partnerships that support its forward work programme and are aligned with shareholder interests.”
