Pride Mahlangu, Business Reporter
AUSTRALIA Stock Exchange-listed Invictus Energy says its Cabora Bassa oil and gas project in Muzarabani, Mashonaland Central province has received priority project status from the Government.
Last year, the firm signed a Memorandum of Understanding with Tatanga Energy to explore the business viability of gas supply to a 500MW power plant from its oil and gas project presently being developed.
In a statement, Invictus expressed pleasure that the project had been named as a priority development project by the Government.
“Invictus Energy Limited is pleased to announce that the Cabora Bassa project at Muzarabani held through the company’s 80 percent interest in Geo Associates (Private) Limited has been classified as a priority development project by the office of the President and Cabinet of Zimbabwe,” it said.
“The Cabora Bassa project has been classified as one of the key projects within Zimbabwe that can provide a significant economic benefit to the economy in pursuit of the vision of becoming a middle-income economy by 2030.”
This comes after the Ministry of Mines and Mining Development was tasked to identify priority projects to be implemented under the Government’s 5th 100-day cycle priority projects using the rapid results initiative.
Invictus said it is encouraged by the strong support offered by the Government to fast track the Cabora Bassa project to achieve several outcomes including the finalisation of a Production Sharing Agreement (PSA) with Zimbabwe.
This is in line with President Mnangagwa declaring that “Zimbabwe is open for business,” and the Government has since been implementing investor-friendly economic reforms under the Transitional Stabilisation Programme.
“The PSA will ensure that a predictable, stable and transparent legal and fiscal regime is put in place that is commensurate with terms in the region, follows international best industry practice and meets the country’s aspirations,” said Invictus.
“Invictus and One-Gas Resources look forward to working in conjunction with the Office of the President and Cabinet and the Ministry of Mines and Mining Development and other ministries to progress the Cabora Bassa project to ensure that key outcomes are delivered during this period.”
Invictus Energy recently completed a placement to raise US$1,5 million through rights issue as it seeks partners in the proposed oil project in Muzarabani. — @pridesinstinctz.