Zimbabwe Edges Closer to Oil Production with Muzarabani Deal Nearing Finalisation

Hopes are mounting across Zimbabwe as the government announces that it is in the final stages of sealing a landmark agreement that could set the stage for the country’s first-ever oil production. The Production and Profit Sharing Agreement (PPSA) for the Muzarabani Oil and Gas project is nearing completion, raising national optimism for a transformative chapter in Zimbabwe’s economic development.

Deputy Minister of Mines and Mining Development, Eng. Caleb Makwiranzou, confirmed that talks with contractors are well advanced. “We are now at the stage where we are negotiating with contractors to establish what is known as a Production and Profit Sharing Agreement. Once this agreement is finalised, the contractor will be granted the right to exploit oil and gas resources in Zimbabwe,” he said. The government aims to wrap up the PPSA negotiations by the end of the second quarter, which ends in August.

The PPSA is central to the Muzarabani project. It will outline exactly how profits from the oil and gas extraction will be shared between the government and the contractors. It will also define the legal and operational responsibilities of each party, providing the green light for extraction activities to begin in earnest.

To prepare for this milestone, the Ministry of Mines and Mining Development recently trained its personnel in the strategic management of oil and mining contracts. The focus was on equipping staff with skills to negotiate deals that are not only equitable but also position Zimbabwe to benefit fully from its natural resources.

Confidence in the Muzarabani project has been bolstered by confirmation from exploration companies Geo-Associates and Invictus Energy that oil and gas reserves have indeed been discovered in the region. This marks the first time in Zimbabwe’s history that the presence of oil has been definitively confirmed within its territory, a breakthrough that significantly alters the nation’s energy and economic prospects.

With the PPSA nearing completion, officials are eyeing the possibility of oil production beginning as early as next year. Preparations are currently underway to ensure a smooth transition from contractual agreement to full-scale extraction.

The development of an oil and gas industry in Zimbabwe is expected to deliver wide-ranging benefits. These include the creation of employment opportunities, an increase in government revenue, and a reduction in the country’s dependence on costly fuel imports.

“The government wants to handle the project in a professional way so that the country gets the best value from its resources,” said Deputy Minister Makwiranzou, emphasizing the commitment to transparency and long-term national gain.

As the Muzarabani Oil and Gas project progresses towards execution, the finalisation of the PPSA is set to be a defining moment for Zimbabwe. The move not only signifies the birth of a new industry but also holds the potential to reshape the country’s economic future and ensure energy security for generations to come.