Regulatory and Compliance

3. Petroleum Exploration Development And Production Agreement (PEDPA)

Following approval from His Excellency President E.D. Mnangagwa, the project signed the Petroleum Exploration Development and Production Agreement (PEDPA) with the Republic of Zimbabwe on the 26 th of March 2021.

The agreement was signed on behalf of the Government of the Republic of Zimbabwe by the Minister for Mines and Mining Development, Hon. Winston Chitando and on behalf of Geo Associates (the licence holder), by the One Gas Chairman, Mr Paul Chimbodza.

• The PEDPA provides the framework for progression of the Cabora Bassa Project through the exploration, appraisal, development and production phases, the obligations and rights of each party, the minimum work program obligations to maintain the licence in good standing, and the security of tenure for the project duration.
• The PEDPA provides the licence holder the right to enter into a 25 year production licence following the exploration periods.
• The PEDPA also provides for Special Economic Zone (SEZ) status for the Cabora Bassa Project which will facilitate a host of fiscal and non-fiscal incentives over the life of the project including legal and fiscal stability, offshore banking, zero capital gains tax, tax holiday periods and 15% corporate rate thereafter.
• President Mnangagwa said “the signing of the PEDPA with Geo-Associates, (One Gas 20% owned), was testimony to the Government’s commitment to open up the economy to investment as well as engage and reengage the global community to do business in Zimbabwe.“
• Vice President Constantino Chiwenga stated that, “ The exploration and development of oil and gas resources is a game-changer in making the Zimbabwe energy sector self-sufficient which is key in realising our national vision.”
• Minister for Mines and Mining Development Hon. Winston Chitando stated, “One of the early engagements we had, as the Second Republic was to engage with One Gas and Invictus to work together to ensure that we work on the development programme of this asset. We are extremely pleased to have executed the PEDPA with the Republic in Zimbabwe following extensive negotiation and collaboration with the various. Ministries, government bodies and the Zimbabwe Investment Development Authority (ZIDA). We are grateful for the collaborative and constructive efforts by the Government to put the PEDPA in place which provides a robust framework to facilitate long term investment into the oil and gas sector with confidence. This is a significant milestone for the project which provides the security of tenure and the confidence for the significant future investment ahead. The PEDPA and the provision for the creation of a Special Economic Zone for the project lays out the pathway for rapid development of the project on exploration success.”