INVICTUS Energy Limited’s (IEL) petroleum exploration development and production agreement (PEDPA) with the government has been reviewed and approved, the firm said last week.
The agreement is expected to provide a stable, transparent, legal, and fiscal framework for the exploration and production of oil and gas in Zimbabwe.
“The petroleum exploration development and production agreement (PEDPA) between Geo Associates and the Republic of Zimbabwe was reviewed by the inter-ministerial committee established to review the agreement and has been approved,” IEL announced in its quarterly update for the period ended December 31, 2020.
“The PEDPA provides the framework for progression of the Cabora Bassa project through the exploration, appraisal, development and production phases and the obligations and rights of each party over the project life cycle. The company is awaiting execution of the agreement.”
Geo Associates (Private) Limited is an Australian headquartered IEL’s 80%-owned subsidiary.
The agreement will allow the government to benefit from any potential finds that IEL makes as it continues exploration efforts in the Muzarabani prospect for oil and gas.
“Detailed traversing and mapping across the area was completed and identified the optimal acquisition routes. The company is making significant progress on executing the first seismic acquisition programme in the country for 30 years and is working closely with the seismic contractors on a planned acquisition campaign in 2021 to commence once the rainy season has concluded,” IEL said.
“This will be followed by a high impact basin opening drilling campaign to test the petroleum potential of the Cabora Bassa Basin. The reconnaissance field programme completed during the quarter revealed additional exposure of the Jurassic-Cretaceous aged Dande Formation and possibly younger sediments approaching the southern basin edge,” said IEL. Newsday