Zimbabwe has signed a major oil and gas agreement that could help the country reduce fuel imports, improve energy security and attract new investment.
The Petroleum Production Sharing Agreement (PPSA) was signed between the Government and Geo Associates for the Cabora Bassa oil and gas project in northern Zimbabwe.
The project is being led by Australian company Invictus Energy, which discovered large gas and oil-condensate reserves in the Cabora Bassa Basin in 2023.
According to estimates, the discovery could hold about 230 million barrels of oil equivalent or 1.3 trillion cubic feet of gas, making it one of the largest discoveries in Sub-Saharan Africa in recent years.
Invictus Energy has already invested more than US$100 million in exploration and recently secured another US$10 million to continue drilling activities.
Finance Minister Professor Mthuli Ncube said the project could help Zimbabwe reduce its dependence on imported fuel, strengthen foreign currency reserves and lower costs for businesses and industries.
Zimbabwe spends large amounts of foreign currency each year importing fuel, which affects sectors such as mining, agriculture, manufacturing and transportation.
Government has granted the project National Project Status, allowing it to benefit from incentives such as tax breaks to speed up development.
Officials say the project could create jobs, boost economic growth and increase investor confidence in Zimbabwe.
The agreement also includes measures for local employment, training, environmental protection and community development.
Attention will now turn to the Musuma-1 exploration well, which will determine the full oil and gas potential of the area.
If successful, Zimbabwe could begin pilot gas-to-power projects within the next 12 to 18 months, moving the country closer to becoming a regional energy producer.
Source: The Herald ZW
