By Brenna Matendere
National Project Status (NPS) has been granted to Invictus Energy’s Cabora Bassa Project in Zimbabwe.
Petroleum Production Sharing Agreement (PPSA) terms have been agreed and final agreement has been prepared for execution.
The development is in recognition of the strategic national and regional importance of the Mukuyu gas-condensate discovery and Cabora Bassa Project and follows last week’s confirmed partnership with Qatari-based Al Mansour Holdingsled by His HighnessSheikh Mansour bin Jabor bin Jassim Al Thani of Qatar.
In a more exciting note, it strengthens Invictus’ position to advance towards commercial gas production and long-term value creation for Zimbabwe and shareholders.
NPS provides significant fiscal and non-fiscal benefits and incentives to assist advancing Cabora Bassa towards commercialisation.
Prof Mthuli Ncube said following a series of constructive meetings, the concerned parties in the new development have finalised terms of the Petroleum Production Sharing Agreement (PPSA),which is now being prepared for execution.
National Project Status is reserved for projects deemed of strategic importance to the country and considered critical to Zimbabwe’s economic growth and development. NPS status provides a range of fiscal and non-fiscal incentives, including duty exemptions, fast-tracked permitting and streamlined access to key infrastructure and services as the project moves towards the development phase.
Invictus Managing Director Scott Macmillan commented:“Agreement of the PPSA terms and the granting of National Project Status represent two pivotal milestones for Invictus and the Cabora Bassa Project.
“The PPSA provides the stable and transparent framework required to progress development, while NPS delivers tangible fiscal benefits to reduce costs and accelerate execution.”
He added: “This recognition underscores the strategic importance of our discovery and the potential it holds to transform Zimbabwe’s energy landscape.
“These outcomes highlight the Government of Zimbabwe’s strong commitment to unlocking the country’s energy potential. We are grateful for their support and look forward to executing the PPSA and moving towards development of the Cabora Bassa Project.”
The Honourable Minister Prof Mthuli Ncube weighed in:
“The Government of Zimbabwe recognises the economic, energy security and social opportunity Cabora Bassa presents.
“We are pleased to be working closely with Invictus Energy through its recent strategic partnership with AlMansour Holdings and to finalise the PPSA to ensure a transparent, fair and commercially sound agreement that benefits the people of our nation.
“The Government is committed to fostering a competitive and attractive investment environment, and we are delighted to partner with Invictus Energy as this landmark project advances towards development.”
The PPSA with the government provides a stable, transparent, legal and fiscal framework for the exploration and production of oil and gas in Zimbabwe under Invictus’ Cabora Bassa Project.
The project is located in the Muzarabani district of Mashonaland Central province, northeast of Zimbabwe.
Last week, Invictus unveiled the Al Mansour Holdings partnership, which triggered a sharp re-rating of its shares.
A day before the announcement, the company’s market capitalisation stood at AU$84,98 million (US$55,2 million), climbing to AU$208,5 million (US$135,4 million) the following day and AU$352,77 million (US$229,6 million) as of Tuesday.
In total, Invictus has gained US$174,2 million in value since the deal was announced.
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