Wakanda News Details

Invictus Energy, One Gas resources sharing agreement expected soon

BY Kudzai Kuwaza THE production sharing agreement between government and GeoAssociates over the exploration of oil and gas in Muzarabini is expected to be completed soon with US$3,5 million spent on the project so far. GeoAssociates,which is a partnership between Australian company Invictus Energy and Zimbabwean company One Gas Resources, started the exploration process in 2018. Addressing journalists at the technical presentation of the Muzarabini oil and gas project yesterday, Mines minister Winston Chitando said the production sharing agreement draft would be concluded in the next few weeks. “We have been seized with negotiating a production sharing agreement with the investor,” Chitando said. “The production sharing draft agreement is almost in place.” He said actual work on the ground was expected to begin next month with geophysical activities, adding that the drilling of the test wells was scheduled to start in the third quarter of 2021. He said two test wells would be drilled, one which is four kilometres in length, with the other being two kilometres in length.He said a total of US$20 million would be spent by GeoAssociates for the exploration process over an area of 100 000 hectares. Chitando said the siting of the wells was vital to the success of the project. He said government had extended the special grants by three years. GeoAssociates managing director Paul Chimbodza said they carried out extensive consultations over the exploration project and had been working with the Chamber of Mines in coming up with a hydrocarbon policy. Chimbodza said they had spent US$3,5 million so far towards the project which includes the cost of reinterpretation of the data around the project.Invictus chairperson Stuart Lake said they were mulling listing on the Victoria Falls Stock Exchange.Invictus has an 80% shareholding, while One Gas Resources has a 20% shareholding in GeoAssociates.

You may also like

More from NewsDay Zimbabwe - Everyday News for Everyday People