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Petroleum Act amendment imminent

By Business Reporter – Wednesday 25 March 2020

HARARE (Mining Index) – AMENDMENTS to the Petroleum Act are expected to be approved soon after government established a technical committee to undertake negotiations for a Production Sharing Agreement (PSA) with Australia Stock Exchange (ASX) listed exploration company, Invictus Energy towards exploration and production of oil and gas in Zimbabwe.

Last year, Invictus started negotiating for a PSA with the Zimbabwean government after noting deficiencies in the current laws due to absence of policy for oil, gas and frameworks for sharing proceeds from the industry.

“The Company and the Government of Zimbabwe have made significant progress with the legal and fiscal framework consisting of amendments to the Petroleum Act and the execution of a Production Sharing Agreement (PSA) between Geo Associates (Private) Limited, the Company’s 80% owned subsidiary together with One-Gas Resources (Private) Limited, and the Republic of Zimbabwe,”

“The Company has been informed by the Ministry for Mines and Mining Development that a Technical Committee has been setup by the Government of Zimbabwe to undertake negotiations for a Production Sharing Agreement and held its first meeting last week,” said Invictus in an update statement to its stakeholders.

The Technical Committee is chaired by the Secretary for Finance and Economic Development with the Permanent Secretaries for Mines and Mining Development including the Energy and Power Development as members together with officials from the Reserve Bank of Zimbabwe (RBZ), Zimbabwe Investment and Development Agency (ZIDA), Office of the President and Cabinet (OPC), Office of the Attorney General and Local Government and Public Works.

“The Company has been invited to make a presentation to the Technical Committee prior to the end of March,” said Invictus.

Invictus says the execution of the PSA is expected to be concluded in the near term.

During the past few weeks, Invictus was hosted by the District Administrator (DA) for Mashonaland Central Province in Centenary, held meetings with Mining Affairs Board and Chiefs representing the Muzarabani and Mbire Rural Districts in the Cabora Bassa project area.

“The Company provided the Chiefs with an overview and update of the project and the upcoming on the ground activity that will commence following the approval of the Environmental Impact Assessment which is expected to be approved shortly,”

“The Chiefs have expressed their support for the project and will be hosting a Cultural Ceremony to welcome the Company to the community and bless the project for the upcoming exploration programme,” said Invictus. ENDS//                                                                    

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