Source: Invictus eyes 10 000 jobs in oil, gas sector | The Sunday Mail
Oliver Kazunga
Senior Business Reporter
INVICTUS ENERGY, an Australian firm scouting for and developing oil and gas assets in northern Zimbabwe, says its projects will create 10 000 jobs directly and indirectly when it commences production.
The company, which began exploration drilling in 2022, spending more than US$80 million to date at its Cabora Bassa Basin in Mbire and Muzarabani districts, Mashonaland Central province, last year, confirmed natural gas and oil discovery in the prospective area.
The Mukuyu discoveries from the Lower and Upper Angwa formations of the targeted prospective area ranked as the second-largest oil/gas discovery in Sub-Saharan Africa in 2023, representing an estimated 230 mmboe (million barrels of oil equivalent) or 1,3 trillion cubic feet (Tcf) of gas from just the first two wells drilled in the 200-square-kilometre Mukuyu structure.
Analysis of downhole samples retrieved to the surface revealed high-quality gas condensate with minimal impurities, ideal for low-cost processing.
Importantly, hydrocarbon presence and migration were proved in secondary targets and present additional upside in shallower targets.
The Mukuyu discovery considerably derisks future exploration and development of the Cabora Bassa Project.
Further 3D seismic data is being acquired over the Mukuyu prospective area to help determine resource scale and assist in high-grading the core development areas of the field.
Simultaneous activities to develop Mukuyu assets include post-well studies, reservoir engineering studies, well design refinements and appraisal drilling (to establish the quality, quantity and other characteristics of oil or gas in the newly discovered field), as well as well-testing to measure and evaluate the production and characteristics of the oil or gas from the discovered wells.
Invictus said it will adopt a sequenced approach to the development and commercialisation of the Mukuyu field, commencing with a pilot project to provide proof of concept ahead of a full field development.
The discoveries marked a major step towards energy security for Zimbabwe and opened new opportunities for economic growth and development, downstream industries, employment creation, improved export earnings and Government revenues.
Condensate, which Invictus has discovered, has many uses that include fuel production, petrochemical input, dilution of heavier oils and heating. It is amenable to many opportunities for use in various processes and industries.
Given the Southern African Development Community region is currently haunted by energy supply challenges, the Invictus oil and gas project provides a promising opportunity for Zimbabwe to export excess electricity.
Apart from energy self-sufficiency, President Mnangagwa is on record saying other potential benefits from the oil and gas discovery include electricity generation, as well as production of liquefied petroleum gas, fertiliser and petro-chemicals.
Following the successful exploration drilling conducted at Mukuyu-1 and Mukuyu-2 wells in Mbire, Invictus is continuing with further test drilling at its Musuma prospective area in Dande next year.
The ongoing investment is expected to yield significant new employment opportunities in the petroleum industry.
In an interview GeoAssociates director Mr Paul Chimbodza whose company is the licence holder for the 700 000-hectare prospective area, told The Sunday Mail Business last week that once extraction commences, significant employment opportunities would be created in primary production, midstream and downstream industries.
“Employment in the primary production, midstream (pipelines and storage) and downstream (gas-to-electricity, and gas-to-fuel) runs into thousands and can reach up to 10 000 employees across the value chain,” he said.
The company believes early monetisation of the oil/gas project could bring significant relief to the country, which at the moment is grappling to meet its national power demand, peaking at 2 200 megawatts (MW), especially in winter.
As such, Invictus has signed two separate agreements with Eureka Gold Mine and Mbuyu Energy for gas-to-power projects, initiatives expected to create further job opportunities beyond primary production.
The two gas-to-power projects will see Invictus supplying 12MW to Eureka Gold Mine and the figure can be raised to 50MW while a local firm in the energy space, Mbuyu Energy, inked an offtake agreement with Invictus for 500MW.
The agreement with Mbuyu Energy has a provision to increase production to 1 000MW.
Zimbabwe’s power deficit is managed through imports, which can result in electricity outages lasting several hours, disrupting commercial and household activity.
Invictus, whose exploration licence covers Special Grant 4571, 1848 and 1849, had its licence renewed by the Mining Affairs Board for a further three years to June 2027.
The firm is also in the process of finalising a petroleum production sharing agreement with the Government under a deal that would guarantee the State a 40 percent share of the hydrocarbons extracted.
In a separate interview, Invictus Energy country manager for Zimbabwe Mr Barry Meikle said his organisation was presently preparing for an upcoming appraisal programme at the Mukuyu prospect and new exploration in the east of the basin to test new prospects.
“So far Invictus Energy has spent in excess of US$80 million on exploration.
“The exploration budget is determined based on future results and will be refined based on results of our upcoming campaign.
“We plan to have a 10MW small gas-to-power pilot project initiated as early as in the first quarter of 2026,” he said.
Mr Meikle said Invictus was presently analysing the results of the last three years of exploration and thus operational activity, which has a knock-on effect on the project’s employment numbers in the prospective area, was low.
While prospects for creating significant employment opportunities once production starts are bright, Mr Meikle said, the company is presently seized with analysing and interpreting the results of the oil and gas discovery from last year.
“We are in a period of low operational activity at the moment as we analyse the results of the last three years’ exploration.
“Currently, we have only a small staff of about 20 people directly involved in the country.”
According to the International Monetary Fund (IMF), many developing countries like Zimbabwe, rich in natural resources, have welcomed private investment in their oil, gas and mining industries.
Projects in the industries, the IMF says, can make a significant contribution to the economic development of host countries if their adverse consequences are minimised through careful planning.
Because they generate sizeable revenues, create jobs and business opportunities, and often bring new roads and access to water and power to the isolated rural areas in which they are typically located, they have the potential to stimulate economic growth, reduce poverty and raise living standards.
The IMF also noted host countries benefit from being exposed to best international practices in project planning and implementation and are forced to build up their administrative and institutional capacity.
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