Invictus Energy Aims to Conclude Zimbabwe Production Agreement Within Weeks

Invictus Energy, an Australian company, anticipates finalizing a production sharing agreement (PSA) with the Zimbabwean government for its Cabora Bassa project within weeks, marking the culmination of years-long delays. This crucial agreement is essential for Invictus to exploit gas discoveries in northern Zimbabwe, with one significant find, Mukuyu, ranked second in sub-Saharan Africa last year by energy consultancy Wood Mackenzie.

Robin Sutherland, a non-executive director at Invictus, disclosed that recent discussions with senior Zimbabwean officials, including central bank governor John Mangudya, indicated a commitment to expedite negotiations, aiming for a swift resolution in weeks rather than extended periods.

Despite efforts to obtain comment, Mangudya’s office remained unresponsive. The PSA, delayed for about four years, is pivotal for Invictus as it seeks to commercialize its discoveries, potentially supplying energy to miners in Zimbabwe amid persistent shortages.

Invictus plans to conduct 3D surveys and test the Mukuyu-2 well to assess its flow rate. Additionally, the company has secured a gas sales agreement with Mbuyu Energy for a 500-megawatt gas-to-power project. Sutherland mentioned plans for a small gas processing facility near the grid to cater to high electricity demand.

While Sutherland expressed optimism about initiating commercial activities within a year or two, he emphasized that nothing has been finalized.