Australia Stock Exchange-listed oil and gas explorer, Invictus Energy, which has discovered natural and condensate gas (light oil) in northern Zimbabwe, has completed its petroleum production sharing agreement with the Government.
The PPSA is designed to ensure equitable sharing of value generated from the Cabora Bassa Project and will also provide a robust governing framework for Zimbabwe’s oil and gas sector.
President Mnangagwa has consistently expressed strong support for the Invictus Energy project, highlighting it as a potential “game changer” that could bring energy independence and significant economic growth in Zimbabwe.
Natural gas and light oil condensate are excellent, flexible fuels for power generation. Against this background, the Government granted the Cabora Bassa project “National Project Status” (NPS), which unlocks various fiscal and non-fiscal incentives, such as tax holidays and a reduced corporate tax rate, to facilitate its rapid development.
The untapped oil and gas deposits also present huge, unique and competitive investment opportunities, given that the industry has various potential downstream linkages, President Mnangagwa said in 2021.
Other potential benefits of the oil and gas discovery, the President noted, included electricity generation, production of liquid petroleum, liquefied petroleum gas (LPG), fertiliser production and petro-chemicals.
The PPSA is expected to be formally executed in January 2026, providing the company with the pathway to commence the next phase of its planned work programme.
Executing a PPSA is the formal process of establishing a contractual relationship between the host government and the company (IOC) that outlines the rights, responsibilities and financial mechanisms for the exploration and extraction of petroleum resources.
This comes as Invictus, which is also listed on Zimbabwe’s Victoria Falls Stock Exchange, recently relocated its headquarters from Australia to Harare, Zimbabwe, to be closer to its massive Cabora Bassa oil and gas project, supporting the huge upcoming further exploration drilling and gas-to-power pilot project.
The company has brought all key management and staff to Zimbabwe to spearhead the transition from exploration to development in the country’s promising new energy sector.
“Completion of the PPSA process represents a significant milestone for the Cabora Bassa Project and establishes a stable, transparent and internationally competitive legal and fiscal framework under which petroleum operations will be conducted,” Invictus said.
With the PPSA expected to be executed in January, Invictus intends to progress its high-impact forward work programme in the Cabora Bassa Basin, which includes the appraisal of the Mukuyu gas field, following the Mukuyu-1 and Mukuyu-2 gas-condensate discoveries.
The agreement will also allow the company to focus on drilling of the Musuma-1 exploration well, designed to unlock significant additional resources in the eastern portion of the Cabora Bassa Basin.
Invictus managing director Scott Macmillan said the completion of the PPSA process was a critical enabler for ongoing investment, development planning and the advancement of exploration and appraisal activities across the Cabora Bassa Basin.
“We are very pleased to have concluded the Petroleum Production Sharing Agreement process and to have a competitive and comprehensive framework in place to govern the future development of the Cabora Bassa Project,” Mr MacMillan noted.
Invictus Energy is opening one of the last untested large frontier rift basins in onshore Africa, the Cabora Bassa Basin, in northern Zimbabwe’s Mashonaland Central Province, through a high-impact exploration programme.
The Mukuyu gas field has multiple hydrocarbon-bearing reservoirs containing high-quality gas in the Upper and Lower Angwa geological rock formations.
The Mukuyu structure has an areal closure greater than 200 square kilometres and vertical relief of 1 400 metres. A significant gas column was observed at the base of both Mukuyu-1 and Mukuyu-2 wells with no water legs encountered to date.
The Mukuyu discovery considerably de-risks future exploration and development of the Cabora Bassa Project. Further 3D seismic data is being acquired over the Mukuyu structure to help determine resource scale and assist in high-grading the core development areas of the field.
Simultaneous activities to develop Mukuyu assets include post-well studies, reservoir engineering studies, well design refinements, appraisal drilling and well testing.
Invictus will adopt a sequenced approach to the development and commercialisation of the Mukuyu field, commencing with a pilot project to provide proof of concept ahead of a full field development.
Invictus Energy’s Cabora Bassa project holds significant gas and condensate resources, with current estimates for prospective resources in the Eastern Margin alone reaching 2,9 trillion cubic feet (Tcf) of gas and 184 million barrels of condensate (gross mean unrisked), plus potential oil resources in the basin margin, while the entire basin could hold over 20 Tcf gas equivalent.
The Qatar-based investment firm Al Mansour Holdings (AMH) recently acquired a significant shareholding in Invictus Energy.
In August 2025, a binding agreement was announced for AMH to acquire a 19,9 percent strategic equity stake in Invictus Energy for $37.8 million (Australian dollars).
AMH committed up to US$500 million in conditional future funding to help bring Invictus Energy’s flagship Cabora Bassa gas project in Zimbabwe into commercial production.
Invictus Energy’s total exploration area in the Cabora Bassa Basin of northern Zimbabwe is approximately 360,000 hectares, which encompasses a basin-scale position across three contiguous licence areas.
These licence areas, which include Special Grant (SG) 4571 and Exclusive Prospecting Orders (EPOs) 1848 and 1849, grant Invictus the right to explore the entire Cabora Bassa basin in the region. – Herald
