Zimbabwe's government, through the Ministry of Finance, has officially granted National Project Status (NPS) to gas explorer Invictus Energy's Cabora Bassa Project, situated in the north of the country.

Invictus said on September 2 that it had agreed terms with President Emmerson Mnangagwa's administration for a Petroleum Production Sharing Agreement (PPSA) with the final deal being prepared for execution.

The NPS is reserved for projects the government considers of strategic importance to the country and considered critical to national economic growth and development. The status provides a range of fiscal and non-fiscal incentives, including duty exemptions, fast-tracked permitting and streamlined access to key infrastructure and services as the project moves towards the development phase.

“Agreement of the PPSA terms and the granting of National Project Status represent two pivotal milestones for Invictus and the Cabora Bassa Project," commented Invictus MD Scott Macmillan, whose company is also listed on Australia’s ASX and Zimbabwe’s dollar-denominated Victoria Falls Stock Exchange (VFEX).

"The PPSA provides the stable and transparent framework required to progress development, while NPS delivers tangible fiscal benefits to reduce costs and accelerate execution. This recognition underscores the strategic importance of our discovery and the potential it holds to transform Zimbabwe’s energy landscape."

Invictus' portfolio in Zimbabwe consists of a highly prospective 360,000 hectares within the Cabora Bassa Basin on which the junior discovered gas in December 2023.

On August 27, Invictus signed a binding memorandum of understanding and share subscription agreement with Qatari group Al Mansour Holdings (AMH) to acquire a 19.9% equity stake in the Perth-based firm. 

AMH, which is linked to Qatar’s royal family, will provide up to $500mn in conditional future finance to advance the gas project to commercial production.

Zimbabwe Finance Minister Mthuli Ncube said the government recognises the economic, energy security and social opportunity that the Cabora Bassa project presents, hence the NPS was accorded. 

"We are pleased to be working closely with Invictus Energy through its recent strategic partnership with Al Mansour Holdings and to finalise the PPSA to ensure a transparent, fair and commercially sound agreement that benefits the people of our nation," he said.

“The government is committed to fostering a competitive and attractive investment environment, and we are delighted to partner with Invictus Energy as this landmark project advances towards development.”