Staff reporter
The Government of Zimbabwe through its Sovereign Wealth Fund of Zimbabwe (SWFZ) and GEO Associates Limited, the parent Company of Invictus Energy have signed a Heads of Agreement, that will see them explore various possibilities in the Muzarabani area.
Speaking during the signing ceremony, Minister of Finance and Economic Development, Professor Mthuli Ncube revealed that negotiations were underway to increase exploration in the Muzarabani area where there are indications of a possibility of crude oil discovery.
“GA proposed to increase the prospect of a Commercial Discovery of Crude Oil and or Natural Gas (hydrocarbons) through the expansion of the seismic data acquisition campaign into the area known as RA MSC003 (CBC South) and to secure an additional rig slot and associated equipment to drill a second well in the exploration drilling campaign which is estimated to commerce June/July 2022.
“The Parties are exploring the possible collaboration to develop upstream natural gas opportunities in Zimbabwe and on the 28th of September 2021, the ZWSF authorised GA to extend its Data Capture program into the Reserved Area,” said Minister Mthuli.
He added, “GA and the Republic of Zimbabwe are currently negotiating an international standard best practice Petroleum Production Sharing Agreement (PPSA) which shall ensure that the Republic of Zimbabwe retains an equitable share of hydrocarbons or revenue in the event of a Commercial Discovery of hydrocarbons.”
Several agreements and deadlines were agreed on during the signing ceremony to include legislative issues that would ensure above board sharing of the spoils between Government and GEO Ltd.
“The Parties have also agreed to ensure that the legislative requirements necessary for the execution of the Petroleum Production Sharing Agreement will be achieved through amendments to an Act of Parliament in July 2022,” he said.
Meanwhile, the aggressive investment into the oil and gas exploration in Muzarabani and the signing of an agreement between Government and GEO Associates resonates well with the country’s Vision 2030 of an Upper Middle Income Economy and the US$12 billion Mining Economy by 2023.
