(WO) — Invictus Energy Ltd. said it has completed the petroleum production sharing agreement (PSA) process for its Cabora Bassa project in Zimbabwe, a regulatory milestone that clears the way for the next phase of exploration and appraisal activity in the basin.
The PSA is expected to be formally executed in January, providing Invictus with a stable legal and fiscal framework to advance its planned work program in the Cabora Bassa basin. The company said the agreement establishes an internationally competitive structure for petroleum operations in Zimbabwe.
With the PSA process concluded, Invictus plans to move forward with appraisal of the Mukuyu gas field, following the Mukuyu-1 and Mukuyu-2 gas-condensate discoveries, and to drill the Musuma-1 exploration well. The Musuma-1 well is designed to test a new play in the eastern portion of the basin.
Invictus Managing Director Scott Macmillan said the completion of the process represents a major step toward development.
“We are very pleased to have concluded the Petroleum Production Sharing Agreement process and to have a competitive and comprehensive framework in place to govern the future development of the Cabora Bassa project,” Macmillan said.
The company said finalizing the PSA is a critical enabler for continued investment, development planning and the advancement of exploration and appraisal activities across the basin.
Zimbabwe’s government also highlighted the significance of the agreement for the country’s emerging oil and gas sector.
“The Republic of Zimbabwe is pleased to have completed this important process to implement a stable and transparent legal and fiscal regime to govern the nascent oil and gas industry in the country that benefits investors and the people of our nation,” said Professor Mthuli Ncube, Zimbabwe’s minister of finance.
