eBusiness Weekly
Golden Sibanda
INVICTUS Energy says its oil and gas exploration project in Muzarabani is well on course after awarding a contract for a seismic survey to Canadian firm Polaris Natural Resources.
A seismic survey is a method used during the exploration phase of oil and gas development. It uses devices to collect data that gives an idea of what is underneath the earth’s surface.
The Australia Stock Exchange (ASX) listed firm will use the data gathered from the seismic survey programme to select sites on which oil and gas test wells will be drilled starting October this year.
Said Invictus Energy managing director Scott Macmillan“Our exploration programme is on track, and the significant amount of preparatory work that we have undertaken is paying off.
“We are using a very experienced contractor and have put in place a very experienced team to run the programme.
“The seismic programme will enable us to refine the Mzarabani-1 target defined from the existing seismic dataset and help us fill our prospect inventory ahead of our basin opening drilling campaign.”
The Invictus boss said after raising millions of US dollars in recent weeks to support the oil and gas project, the company was excited to get the exploration programme underway.
This will be the first time an oil/gas well will be sunk in Zimbabwe with up to US$15 million expected to be invested on each test-well needed to confirm the commercial viability of the project.
The awarding of the seismic contract to the Canadian company comes after Invictus Energy last month signed a petroleum exploration development and production agreement (PEDPA) with the Government.
The agreement provides the framework for accelerated development of the Muzarabani oil and gas project as well as rights and obligations of each part throughout the lifecycle of the highly anticipated transformative project.
President Mnangagwa said at the signing ceremony for the PEDPA that the agreement will provide a pathway for Zimbabwe to exploit its hydro carbons while the discovery of oil and gas will bring with it significant downstream benefits.
Benefits expected to accrue include energy self-dependency (oil, electricity, production of liquefied petroleum gas) petro-chemicals, revenue to the fiscus, growth in exports, job creation and downstream industries among others. Zimbabwe depends heavily on mining revenues, which accounted for more than three quarters of the country’s annual earnings and would receive news of commercial discovery with glee.
Invictus said in a statement this week that Polaris had conducted over 1 000 seismic projects since 1996 and introduced the first ‘low impact seismic crew’ into the Africa continent in 2008.
Polaris has reportedly conducted over 15 projects in East Africa and has been well accepted in all communities where it has operated.
“Polaris will also deploy the world’s newest and smallest wireless recording nodes and receivers,” Invictus said in the statement released on the ASX’s website.
Bill Mooney, Polaris chief executive said; Polaris is very pleased to support Invictus (Energy) on this world class project.
“The combination of technologies being employed represent not only the lightest seismic footprint possible, but also allows for very fast and high resolution data acquisition.”
Polaris intends to conduct, process, and interpret a minimum of 400 line kilometres of 2D (two dimensional) seismic to refine the Mzarabani-1 drilling location and well path and identify additional prospectivity for the upcoming drilling exercise.
The proposed seismic survey will be conducted with a minimal environmental footprint and utilise existing roads and tracks wherever possible, Invictus Energy pointed out.
Invictus Energy non-executive director Joe Mtizwa said the processed data set gathered by French and global oil giant Mobil in the early 1990s had shown strong evidence of potential existence of commercially viable hydrocarbons in Muzarabani.
Invictus Cabora Bassa Project, which encompasses the Mzarabani Prospect, is a multi-trillion cubic feet and liquids-rich conventional gas-condensate target, which is potentially the largest, undrilled seismically defined structure onshore Africa.
The prospect is defined by a robust multimillion dollar dataset acquired by Mobil in the early 1990s that includes seismic, gravity, aero-magnetic and geochemical data.
Oil is a key import to many producing African countries.
The IMF said in 2018 the petroleum sector accounted for over 50 percent of gross domestic product (GDP) of Equatorial Guinea, 80 percent of State revenue and over 94 percent of exports, with crude oil exports alone, $3.2 billion, accounting for 65 percent.
In the Republic of Congo, data shows that the petroleum industry accounted for an estimated 60 percent of the State budget, whilst in Algeria, which is also a significant gas producer, Algeria has reported 95 percent of exports, 52 percent of budget revenues and 25 percent of GDP are from hydrocarbons.
