Invictus Energy has ended talks with Al Mansour Holdings after failing to agree a deal that would have seen the wealthy Qatari fund take an equity stake and fund gas exploration.
Under the original deal, Al Mansour was to buy a 19.9% stake in Invictus for US$24.5 million, at a premium to market, and provide up to US$500 million in follow-on funding to advance the Mukuyu gas discovery to commercial production. The Qatari fund was also set to take a board seat.
Al Mansour Holdings is backed by Sheikh Mansour bin Jabor bin Jassim Al Thani, a member of Qatar’s royal family. The partnership also included a joint venture, Al Mansour Oil & Gas (AMOG), which was to pursue oil and gas assets across Africa.
But repeated delays to the settlement signalled strain in the talks. Invictus has now pulled the plug.
“It has also become apparent to Invictus that AMH does not intend to satisfy its contractual obligations under the Subscription Agreement,” the company 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 agreement with immediate effect.”
Invictus said it remains focused on progressing its core assets in the Cabora Bassa Basin and is engaging alternative strategic and funding partners, including industry players.
The company declared a gas discovery at Muzarabani in December 2023, following nearly a decade of exploration. Further drilling, flow testing and seismic work are still required to confirm reserves, gas quality and development options, a process that can take years before production.
Meanwhile, Invictus and the government are close to finalising a Petroleum Production Sharing Agreement, which will set out how future revenues are shared. – NewZwire
