Invictus signs Petroleum Exploration Development & Production Agreement with Zimbabwe
Invictus Energy announced that following approval from His Excellency President E.D. Mnangagwa, the Petroleum Exploration Development and Production Agreement (PEPDA) between Invictus’s 80% owned subsidiary, Geo Associates and the Republic of Zimbabwe has been executed.
The PEDPA provides the framework for progression of the Cabora Bassa Project through the exploration, appraisal, development and production phases, the obligations and rights of each party, the minimum work program obligations to maintain the licence in good standing, and the security of tenure for the project duration. The PEDPA provides the licence holder the right to enter into a 25 year production licence following the exploration periods.
The Company is currently in the 2nd exploration period. The PEDPA also provides for Special Economic Zone (SEZ) status for the Cabora Bassa Project which will facilitate a host of fiscal and non-fiscal incentives over the life of the project including legal and fiscal stability, offshore banking, zero capital gains tax, tax holiday periods and 15% corporate rate thereafter.
His Excellency, President E.D. Mnangagwa stated: “The signing of the (PEDPA) agreement represents major strides in our efforts to tap into our oil and gas deposits, which is a new territory in the country’s mining sector. Other potential benefits of an oil and gas discovery include electricity generation, production of liquid petroleum, liquefied petroleum gas (LPG), fertiliser production and petrochemicals. The signing of the PEDPA with Geo-Associates, (Invictus’ 80% owned subsidiary), was testimony to the Government’s commitment to open up the economy to investment as well as engage and reengage the global community to do business in Zimbabwe.“
Vice President Constantino Chiwenga stated that, “the exploration and development of oil and gas resources is a game-changer in making the Zimbabwe energy sector self-sufficient which is key in realising our national vision.” Minister for Mines and Mining Development Hon. Winston Chitando stated, “one of the early engagements we had, as the Second Republic was to engage with Geo-Associates and Invictus to work together to ensure that we work on the development programme of this asset. Should these (oil & gas test) wells be successful, as we hope, Zimbabwe will, by this time next year, be a producer of oil.”
Invictus Managing Director, Scott Macmillan commented: “We are extremely pleased to have executed the PEDPA with the Republic in Zimbabwe following extensive negotiation and collaboration with the various Ministries, government bodies and the Zimbabwe Investment Development Authority (ZIDA). We are grateful for the collaborative and constructive efforts by the Government to put the PEDPA in place which provides a robust framework to facilitate long term investment into the oil and gas sector with confidence. This is a significant milestone for the project which provides the security of tenure and the confidence for the significant future investment ahead. The PEDPA and the provision for the creation of a Special Economic Zone for the project lays out the pathway for rapid development of the project on exploration success.”