Zimbabwe Moves Closer to Oil Production as Muzarabani Project Gains Momentum
The Zimbabwean government has expressed satisfaction with the advancements in the Muzarabani Oil and Gas project, which is now moving toward production.
Authorities are finalizing the Production and Profit Sharing Agreement (PPSA) to ensure Zimbabwe maximizes its petroleum resources.
Speaking on the progress, Deputy Minister of Mines and Mining Development, Responsible for Oil and Gas, Honourable Engineer Caleb Makwiranzou, explained the next steps:
“We are now at the stage where we are negotiating with contractors to establish what is known as a Production and Profit Sharing Agreement.
“Once this agreement is finalized, the contractor will be granted the right to exploit oil and gas resources in Zimbabwe.”
Makwiranzou further outlined the expected timeline for completing negotiations, stating, “We are targeting the completion of these negotiations by August.
“Once the PPSA is signed, the project’s timeline will largely depend on the contractor.”
Officials from the Ministry of Mines and Mining Development recently undertook specialized training focused on structuring, negotiating, and managing contracts within the mining and petroleum sectors.
The initiative aims to equip Zimbabwe with the expertise needed to secure favorable agreements and maximize national benefits from its natural resources.
ZBC reported that exploration by Geo-Associates and Invictus Energy confirmed oil and gas reserves in the Muzarabani basin.
Mining operations are projected to commence early next year, marking Zimbabwe’s first definitive oil reserve discovery.
OilPrice.com ranks Muzarabani among the Top Five wildcat drilling projects globally, emphasizing its industry significance.
Additionally, Invictus Energy has made a significant gas discovery at its Mukuyu 2 drill site in the Cabora Bassa Basin, with laboratory analysis of gas samples currently underway in the United States.
Officials are optimistic that Muzarabani will reduce fuel import dependency, create jobs and drive petroleum sector investment.
