Invictus Energy Ltd. has signed a petroleum production sharing agreement (PPSA) with the government of Zimbabwe, establishing a long-term legal and fiscal framework for its Cabora Bassa project.
The agreement was executed via Geo Associates, an 80 per cent owned subsidiary of Invictus that holds the permits containing the Mukuyu gas-condensate discovery.
The new PPSA supersedes a previous exploration agreement signed in 2021 and governs the project’s entire lifecycle across exploration, appraisal, development, and production.
It introduces critical fiscal incentives, including the granting of National Project Status and Special Economic Zone status.
These provisions offer contract stability and investment protection designed to lower development costs and fast-track production timelines.
Under the agreed framework, Zimbabwe and its citizens will directly participate in the project’s profitability through a product-sharing structure alongside standard corporate taxes and royalties.
The agreement also formalises the participation of the Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund, which is already a significant shareholder in Invictus.
Invictus CEO Scott Macmillan described the signing as a defining milestone for both the company and Zimbabwe’s upstream oil and gas sector.
“The PPSA establishes a robust, transparent and globally competitive framework that provides long-term certainty for all stakeholders, while creating a strong foundation to accelerate development activities across the basin,” the CEO said.
Zimbabwe’s Minister of Finance, Mthuli Ncube, added that the Cabora Bassa project has the potential to transform the nation through enhanced energy security, industrial growth, and job creation.
“The Cabora Bassa Project has the potential to become transformational for Zimbabwe through energy security, industrial development, employment creation and broader economic growth,” Ncube said.
With the regulatory framework finalised, the oil and gas explorer is turning its focus to the next stage of its high-impact exploration program, with preparations well advanced to spud the Musuma-1 exploration well in the second half of 2026.
