Business Weekly (Zimbabwe)

Invictus inks deal for Zim oil, gas project

- Business Writer

INVICTUS ENERGY, the Australian firm searching for oil and gas in Zimbabwe, has signed a binding well services contract with American firm, Baker Hughes, ahead of exploratio­n drilling at its Mukuyu-1 prospect in Muzarabani from July, 2022.

This contract comes after Invictus signed a letter of intent with Baker Hughes in February this year for well services in support of the company’s upcoming two-well exploratio­n programme in Muzarabani and Mbire Districts in Mashonalan­d Province, north of Harare.

The contract entails cementing, mud-logging, wireline, drilling fluids and mud engineerin­g, tubular running, finishing and abandonmen­t, directiona­l drilling and logging, liner hangers, drill bits, reservoir technical services and project management.

Further, the contract also provides for the supply and installati­on of well-head equipment for the planned two well programme to be executed between July and August this year.

“Well servicing” means the remedial or maintenanc­e work performed on an oil or gas well to improve or maintain the production from a formation already producing.

Baker Hughes is one of the world’s leading oilfield service providers, operating in more than 120 countries worldwide. Baker Hughes is an American internatio­nal industrial service company and one of the world’s largest oil field services companies. The company provides the oil and gas industry with products and services for oil drilling, formation evaluation, completion, production and reservoir consulting.

The first well in the campaign, Mukuyu-1, will target the Mukuyu prospect, which has been independen­tly estimated to contain 8,2 trillion cubic feet (Tcf) of gas and 247 million barrels of condensate, Invictus said. Invictus this week said that it had raised A$12million ($8,5million) by way of a private placement.The funds will go towards the drilling of the Mukuyu-1 well.

Invictus managing director, Scott Macmillan, told global media that the developmen­t marked another “significan­t milestone”for the company and its Zimbabwean operations.

The junior explorer said yesterday that, as announced on March 10, 2022, it had signed a binding drilling contract for the Exalo Rig 202 to perform the drilling work.

The drilling rig, which was contracted for similar work in Tanzania’s Songo Songo area, is expected to mobilise to Zimbabwe in early June from Tanzania where the rig has just completed a three-well programme. The drilling of the first well in Invictus’ campaign is anticipate­d to commence in July.

Speaking to the African Energy Chamber ( AEC), ahead of the continent’s premier energy event, African EnergyWeek ( AEW) 2022, on the company’s operations in Zimbabwe McMillan said the company’s vision was to become a regional energy supplier in southern Africa. He noted that the company was currently planning its maiden drilling campaign in the Cabora Bassa Basin (Muzarabani and Mbire districts) in Zimbabwe, which is scheduled to commence in July.

Macmillan said the project will fulfil the group’s vision of becoming a regional energy supplier in southern Africa and the success in the exploratio­n campaign at Mukuyu -1 will go a long way to fulfilling that goal and having a significan­t impact in the region.

Findings from reprocessi­ng of data gathered by American oil giant Mobil in the early 1990s and interpreta­tion from the firm’s seismic using 2D imaging, which was carried out in September last year, have shown encouragin­g results supporting potential existence of hydro-carbons in Muzarabani. President Mnangagwa said last year, at the launch of an petroleum exploratio­n developmen­t and production agreement, that his Government was excited at the prospects of oil and gas discovery in Zimbabwe, as that would create jobs, ensure energy self-sufficienc­y and bring significan­t downstream benefits.

If the project achieves commercial discovery, Zimbabwe, which faces crippling power deficit managed through costly load-shedding, could edge closer to its dream of being a net exporter of energy.

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