AUSTRALIAN energy firm Invictus Energy Limited is preparing to enter the next phase of its Zimbabwe operations, with execution of its Petroleum Production Sharing Agreement (PPSA) with the Government of Zimbabwe expected by the end of the current quarter.
The agreement will provide a stable, transparent legal and fiscal framework governing oil and gas exploration and production at Invictus’s Cabora Bassa Project in Muzarabani District, Mashonaland Central Province, and outlines how production and profits will be shared once commercial extraction begins
This deal is a pivotal step for Zimbabwe’s energy sector. After years of stalled exploration, the formal execution of the PPSA signals a move toward the commercialisation of domestic gas resources, which could provide much-needed energy, attract foreign investment, and contribute to the country’s economic growth. For Invictus, it sets the stage to progress with high-impact drilling and appraisal programmes that could unlock substantial new reserves.
Progress on the PPSA comes despite a recent setback for the company after its proposed strategic partnership with Qatari investment group Al Mansour Holdings collapsed.
The failed deal, which would have injected up to US$500 million into Invictus and potentially handed the Qatari firm and other investors a 50% stake, wiped about US$89,81 million off the company’s market value.
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“During the quarter, Invictus finalised the long-awaited Petroleum Production Sharing Agreement process for the Cabora Bassa Project in Zimbabwe, representing a major regulatory, legal and commercial milestone for the company,” Invictus said in a statement.
“An agreement between the company and the government of Zimbabwe, the PPSA establishes a stable, transparent and internationally competitive legal and fiscal framework under which petroleum production operations at Cabora Bassa can be conducted.”
Completion of the PPSA is expected to unlock the next phase of planned work programmes in the Cabora Bassa Basin, including appraisal of the Mukuyu Gas Field following the Mukuyu-1 and Mukuyu-2 gas-condensate discoveries, as well as drilling of the Musuma-1 exploration well, which targets a new play in the eastern part of the basin.
Invictus plans to commence appraisal activities at the Mukuyu Gas Field in 2026 to delineate the field’s size and reservoir quality. The programme is aimed at de-risking the asset and generating data to support future development, positioning Cabora Bassa for potential commercialisation.
The company also intends to drill the Musuma-1 exploration well in the first half of 2026. The well will test high-potential structural and stratigraphic targets and could significantly expand Invictus’s resource footprint. Preparatory work is already underway, including site mobilisation, well pad planning, and advancement of regulatory approvals.
“Musuma-1 is the first high-impact exploration well to be drilled outside the Mukuyu gas-condensate discovery area,” Invictus said.
It said success at Musuma-1 could unlock a substantial new resource base in addition to the proven Mukuyu Gas Field and provide valuable insights into eastern margin plays, helping refine Cabora Bassa’s initial development phase.