HIGHLIGHTS
- A final independent review of the Petroleum Production Sharing Agreement (PPSA) by external European legal counsel has been completed and is now with the relevant Government authorities
- Finalisation of PPSA now expected in coming weeks in preparation for execution
- PPSA will provide a stable, transparent, and equitable legal and fiscal framework to govern the country’s oil and gas sector
Invictus Energy has announced that the independent review of the Petroleum Production Sharing Agreement ('PPSA') has been submitted by external European legal counsel.
This review, facilitated through the Africa Legal Service Facility, marks a significant milestone in the development of the Company’s exploration and production activities.
Geo Associates, the Company’s 80% owned subsidiary and holder of Special Grant 4571 containing the Mukuyu gas-condensate discovery, has received indication that the PPSA will be finalised for execution in coming weeks.
The PPSA is designed to ensure fair and equitable sharing of value generated from the Cabora Bassa Project between the Government, Invictus and its partners, as well as providing a robust governance framework for future management of the project.
Demonstrating the Government of Zimbabwe`s long-term support for the Cabora Bassa Project in July 2024, the Mutapa Investment Fund (MIF) committed to underwriting US$5 million of a US$10 million capital raise.
Invictus Energy Managing Director Scott Macmillan commented:
'Completion of the PPSA review by external independent counsel is a significant milestone for Invictus and underscores the Company’s commitment to adhering to international best practices and fostering robust partnerships with host governments.
'Once executed the PPSA represents a key step in ensuring the long-term success of the Company’s operations and contributing positively to the development of the region's energy sector.
'We are proud to play a pivotal role in Zimbabwe’s critical oil and gas industry and remain committed to delivering sustainable benefits for all stakeholders, including the communities where we operate.
'With the PPSA execution imminent, we look forward to progressing our exploration and production efforts and delivering long-term value for our shareholders.'
Source: Zimbabwe
