Natasha Chamba, Business Reporter
AUSTRALIAN Stock Exchange listed company, Invictus Energy, has signed a Memorandum of Understanding (MoU) with Sable Chemical Industries Limited for the supply of gas from the Cabora Bassa project in Mashonaland Central province.
Invictus is exploring for oil in the Muzarabani area, which also has huge gas reserves. The MoU is meant to facilitate the supply of gas to the fertiliser manufacturer for a period of up to 20 years once production commences.
In a statement Invictus said the MoU with Sable Chemicals was meant to supply gas from Cabora Bassa subject to a commercial gas discovery being made. Invictus said it would be delivering 70 million cubic metres of gas per day to Sable Chemicals.
“Invictus Energy Limited is pleased to announce that the Cabora Bassa project partners, comprising Invictus 80 percent and One-Gas Resources Pvt Ltd 20 percent, have entered into a non-binding MoU with Sable Chemical Industries Limited, to progress gas supply from the Cabora Bassa Project to a commercial discovery being made from SG 4571,” reads part of the statement.
“MoU signed for the supply of up to 26 billion cubic metres of gas per year for 20 years (70 million cubic metres per day).”
Based in Kwekwe Sable Chemicals is the sole manufacturer of Ammonium Nitrate fertiliser and a potentially large gas consumer.
Invictus said under the MoU, both parties have agreed to jointly work together and cooperate with regards to investigating the economic and commercial viability of supplying natural gas from the Cabora Bassa project to the Sable plant.
The Netherland, Sewell and Associates, Inc (NSAI), a worldwide leader of petroleum property analysis to industry, financial organisations and government agencies, concluded that the whole Muzarabani prospect where Cabora Bassa is located contains 3,9 trillion cubic metres natural gas and 181 million barrels of condensate.
Invictus Energy managing director Mr Scott Macmilan said they were proud to work with Sable Chemicals to fulfil its ambition of becoming the preferred manufacturer and supplier of fertilisers in Africa.
“Signing this MoU with Sable marks a significant milestone in our commercial negotiations as we look to progress the Cabora Bassa Project. Sable is the sole producer of nitrogenous fertiliser in Zimbabwe and a well recognised brand in the country. We are proud to work with them to fulfil their ambition of becoming the preferred manufacturer and supplier of fertilisers and other chemicals in Africa,” he said.
Sable Chemicals chief executive officer Mr Bothwell Nyajeka also said he was pleased to enter into a MoU with Invictus saying the deal would potentially secure an indigenous natural gas supply to produce ammonia gas for their fertiliser plant.
“Sable Chemicals has a capacity to produce 240 000 tonnes of AN per year,” he said.