Mutapa Investment Fund to Participate in Invictus’s PPSA for Zim Gas Project
Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund, has been nominated to participate in Invictus Energy’s Petroleum Production Sharing Agreement (PPSA) for the country’s Cabora Bassa gas project, marking a significant step in the development of Zimbabwe’s energy sector.
Invictus Energy’s Progress in Zimbabwe
Invictus Energy, an Australian-based exploration company, has made substantial progress in its Zimbabwean operations. In its quarterly report for the period ending September 30, 2024, the company detailed its key milestones, including the identification of multiple high-potential gas prospects in the Cabora Bassa Basin.
The Mukuyu field, located in this region, has proven to be a key area for gas discoveries. The company has defined eight promising prospects in the area, with an estimated 2.9 trillion cubic feet of gas and 184 million barrels of condensate. One of the most significant findings is the Musuma prospect, which is considered a top candidate for drilling, with recoverable resources estimated at 1,170 billion cubic feet of gas and 73 million barrels of condensate.
Strategic Partnerships and Equity Holdings
The participation of the Mutapa Investment Fund in the PPSA is a key development, as the Fund will be the beneficiary of the product/profit share and equity holder for the Zimbabwean government. This equity holding, valued at US$5 million, reinforces the importance of the partnership between Invictus Energy and the government of Zimbabwe in the Cabora Bassa Project.
Invictus has worked closely with the Fund to ensure that the revenue from the project is shared equitably, with an eye towards sustainable development and benefit-sharing for Zimbabweans. The finalization of the PPSA agreement is expected to play a crucial role in the smooth progression of the project, which will bring significant economic opportunities to the country.
Further Developments and Future Plans
Invictus has also secured a three-year extension of its exploration license for the SG 4571 area, covering the Mukuyu Gas Field, which will now last until June 2027. The company plans to conduct comprehensive work programs, including 3D seismic acquisition and additional exploration and drilling activities to appraise the gas field’s resources. These efforts are aimed at preparing the project for early commercialization, including a gas-to-power initiative at the Eureka Gold Mine.
Invictus is also in late-stage discussions with several potential partners for the Cabora Bassa Project, which could further enhance the development of the area. Additionally, the company successfully completed a US$10 million institutional placement, with US$5 million of this coming from Mutapa Investment Fund.
The collaboration between Mutapa Investment Fund and Invictus Energy in the Cabora Bassa gas project marks a pivotal moment in Zimbabwe’s energy development. With significant gas reserves in the region and key partnerships in place, Invictus is positioning itself as a key player in the country’s energy landscape. The project promises not only to advance Zimbabwe’s energy sector but also to provide substantial benefits to the local economy, creating jobs and driving long-term economic growth.
