The Government of Zimbabwe, Australian energy company Invictus Energy and its subsidiary Geo Associates have signed an agreement establishing the framework for oil and gas exploration for the first time in the country’s history.
According to Zimbabwe’s official government gazette, the Petroleum Production Sharing Agreement (PPSA) sets out the rules governing the exploration, development and production of oil and gas under the Cabora Bassa Project, located in Muzarabani district in the north of the country.
“The official publication of the Petroleum Production Sharing Agreement is a historic milestone for Invictus and for the Cabora Bassa Project, completing the final formal step following the landmark signing of the agreement earlier this year,” said Scott Macmillan, Managing Director of Invictus Energy, in a statement cited by Spanish news agency EFE.
Macmillan added that the agreement establishes the long-term fiscal, legal and commercial robustness needed to underpin the “significant investment required” to advance the project.
The signing follows an agreement reached in May between the Zimbabwean government and Geo Associates on petroleum production sharing, under which Zimbabwe may receive its share either in cash or in oil and gas.
Exploration studies estimate that the Cabora Bassa basin contains approximately 20 trillion cubic feet of gas and 845 million barrels of condensate — a mixture of very light liquid hydrocarbons found in underground natural gas reservoirs.
Zimbabwe has suffered from chronic energy shortages for years, relying heavily on thermal and hydroelectric power plants that have been unable to meet domestic demand, making the potential development of these resources particularly significant for the country’s energy outlook.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=557547
