Australian energy firm,Invictus,on Wednesday signed a landmark petroleum production sharing (PPSA) agreement with Zimbabwe through its subsidiary,Geo Associates.
It is a key step for the company as it looks to advance its efforts to commercialise hydrocarbon resources in the Cabora Bassa basin.
At the signing ceremony in Harare,Invictus CEO Scott Macmillan said the PPSA would be a hybrid model.
This means that the state can choose between taking a portion of the profits or a share of the gas eventually produced.
In 2023,Invictus declared large gas condensate discoveries at its Mukuyu gas field,potentially opening up a new inland oil and gas frontier in Zimbabwe.
The company is preparing to drill its next Musuma-1 exploration well in the second half of this year,targeting 1.2 trillion cubic feet of gas and 73 million barrels of condensate resource.
Zimbabwe's finance minister,Mthuli Ncube,described Wednesday’s agreement as proof that the country was determined to unlock its natural resources for future generations.
United News - unews.co.za