AUSTRALIAN firm, Invictus Energy Limited, has revealed that its petroleum production sharing agreement with government will be finalised in a few weeks’ time.
The agreement will provide a stable, transparent, legal and fiscal framework for the exploration and production of oil and gas in Zimbabwe.
The firm is currently running its Cabora Bassa project in the Muzarabani district of the Mashonaland Central Province, where it is exploring for gas and oil.
In December last year, the company made a gas discovery and recently discovered an estimated 184 million barrels of potential oil at its project.
In a statement last Friday, Invictus said a final independent review of the petroleum production sharing agreement by external European legal counsel had been completed and handed over to relevant government authorities.
“This review, facilitated through the Africa Legal Service Facility, marks a significant milestone in the development of the company’s exploration and production activities,” Invictus said.
“Geo Associates (Pvt) Ltd, the company’s 80% owned subsidiary and holder of Special Grant 4571 containing the Mukuyu gas-condensate discovery, has received indication that the petroleum production sharing agreement will be finalised for execution in [the] coming weeks.”
According to Invictus, the petroleum production sharing agreement is designed to ensure fair and equitable sharing of value generated from the Cabora Bassa project between the government, Invictus and its partners.
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The agreement will also provide a robust governance framework for future management of the project.
“Completion of the petroleum production sharing agreement review by external independent counsel is a significant milestone for Invictus and underscores the company’s commitment to adhering to international best practices and fostering robust partnerships with host governments,” Invictus managing director Scott Macmillan said.
“Once executed the petroleum production sharing agreement represents a key step in ensuring the long-term success of the company’s operations and contributing positively to the development of the region's energy sector.”
He said the firm was proud to play a key role in Zimbabwe’s critical oil and gas industry and committed to "delivering sustainable benefits for all stakeholders, including the communities" where it operates from.
“With the petroleum production sharing agreement execution imminent, we look forward to progressing our exploration and production efforts and delivering long-term value for our shareholders,” Macmillan said.
In July, the Mutapa Investment Fund committed to underwriting US$5 million of a US$10 million capital raise by Invictus.
