Zimbabwe’s government and an Australian Stock Exchange-listed company yesterday signed a Petroleum Exploration and Development Production Agreement (PEDPA), with Invictus Energy’s oil explorations taking place in Muzarabani.
President Emmerson Mnangagwa, during the signing ceremony, said the signing of PEDPA is a testimony of the government’s commitment to open up the country’s economy to investment as well as engage and re-engage the global community to do business in Zimbabwe.
“Following the signing of this agreement, I am informed that Goe-Associates (Pvt) Ltd will immediately commence the first phase of the project, which involves the sinking of two exploration wells at a total of US$30 million,” he said.
“I exhort all potential stakeholders to position themselves for the value chain benefits, new investments and technologies that will accrue from the exploitation of oil and gas in our country.”
The Zimbabwean leader also said the signing of the agreement with Invictus Energy represents major strides in the government’s efforts to tap into Zimbabwe’s oil and gas deposits, which is new territory in the country’s mining sector.
“The untapped oil and gas deposits present huge, unique and competitive opportunities, given that the industry has various potential downstream linkages,” he said.
“These include electricity generation, production of liquid petroleum gas (LPG), fertilizers and petrochemicals, among other products.”
“The signing of this agreement and mining activities envisaged there under, will give further impetus to the accelerated attainment of the US$12 billion mining sector economy by 2023,” he went on.
Invictus had earlier on paused the trading of its securities following the deal with the Zimbabwean Government.
Invictus Managing Director, Scott Macmillan said the trading halt is in accordance with the requirements of the (Australian Stock Exchange) listing rule.
“The Company is expecting to announce an update to the market on or prior to the commencement of trading on 29 March 2021,” he said.
