Governmnet To Get 60% From Muzarabani Oil And Gas Project

Australian investor Invictus Energy local representative Paul Chimbodza has said that the country will pocket 60% of the proceeds that will be generated from the MUzarabani Oil and Gas project which is currently under exploration in nthe Cabora Bassa Basin.
Mr Chimbodza said that Invictus Energy had reached an agreement with the government and that Zimbawe would pocket a lion share of the proceeds from the project
“We have struck an agreement with the Sovereign Wealth Fund of Zimbabwe, which is obviously the government, which will be getting 10%
The production share agreement envisions that the government of Zimbabwe takes at least 55% to 60% of the total value of the project. Whether that is in the form of product or revenue, it is for government to choose,’’he said.
In September, Australian Energy firm commenced drilling operations at the Mukuyu-1 Exploration Well, situated in the Muzarabani-Mbire area within the company’s 80%-owned and operated Cabora Bassa Project in the northern part of Zimbabwe.
The company thinks 20 trillion cubic feet of gas are located in this well in the Muzarabani-Mbire area, in the north, near the border with Mozambique. After Mukuyu-1, Invictus will drill the Baobab-1 well. This second well will test an independent play on the basin margin. Work on the Baobab-1 will take around 30-40 days.
In August, the company raised additional $17m to fund the drilling of the exploration wells through private placement.The project is expected to transform the Zimbabwean economy if oiol is discovered in the basin.