The Zimbabwean government plans to sign a production sharing agreement with the Australian energy company Invictus Energy, to develop the cabora Bassa gas project. For this, he set up a technical committee to undertake negotiations with the exploration firm.
“The company has been informed by the Ministry of Mines and Mining Development that a technical committee has been established by the government of Zimbabwe to enter into negotiations for a production sharing agreement. The Committee held its first meeting last week , ” said Invictus in a statement released on Wednesday.
The technical committee is chaired by the Secretary of State for Finance and Economic Development. It includes the permanent secretaries of Mines and Mining Development, Energy and Electricity, as well as officials from the Central Bank, the Zimbabwe Investment and Development Agency, the Office of the Attorney General and from the Department of Public Works.
The government said the agreement should be signed in the short term and will provide a stable and transparent legal and fiscal framework for the exploration and production of hydrocarbons in Zimbabwe. As a reminder, Invictus has been planning for a few months to attract an investor to the area, in order to share with it the shares and costs related to development.
The Cabora Bassa project includes an important discovery of gas called Muzarabani. It is one of the most important prospects for undeveloped natural gas in Africa. The perimeter has recently been classified as a priority development project by the government.
Source: Agence Ecofin