Invictus Energy’s $500m Zimbabwe deal with Qatari investor collapses

By Agencies

Australia-listed Invictus Energy has pulled out of a proposed deal with Qatar’s Al-Mansour Holdings – which included a mooted $500m of investment in the Cabora Bassa gas project – after saying the Gulf company was seeking ‘unacceptable’ terms.

The development brings to an end to months of negotiations around a proposed equity injection and wider partnership.

Unable to agree acceptable terms for a revised transaction, the Australian-listed explorer has ceased all discussions with AMH, reopening the funding search as it advances the Cabora Bassa Basin project in Zimbabwe.

Breakdown of Negotiations

The termination follows a series of deferrals to the original subscription agreement, reported in August 2025, under which AMH agreed to acquire a 19.9% equity stake in Invictus for A$37.8 million before costs.

The settlement date was repeatedly extended as both parties sought to align strategic priorities and explore a revised transaction structure that could have resulted in AMH and associated Qatari investors becoming major shareholders.

Invictus said the parties were ultimately unable to reach agreement on a revised structure.

“Following extensive discussions, the parties have been unable to reach an agreement on a suitable structure for the Revised Transaction,” Invictus said in a statement.

“The Company advises that the terms and conditions being sought by AMH were not acceptable to Invictus, including certain proposed provisions which are contrary to applicable ASX Listing Rules and ASIC regulatory requirements and unacceptable and non-commercial terms.”

The statement continued; “It has also become apparent to Invictus that AMH does not intend to satisfy its contractual obligations under the Subscription Agreement.

“In light of AMH’s conduct, which Invictus considers constitutes a repudiation of the Subscription Agreement, Invictus has elected to accept the repudiation and terminate the Subscription Agreement with immediate effect.

“Accordingly, Invictus has ceased all discussions with AMH and no further negotiations or transactions are being progressed between the parties.”

AMOG and Conditional Funding Context

Alongside the proposed equity investment, the original transaction included the formation of Al Monsour Oil & Gas (AMOG), a joint venture vehicle intended to pursue producing and near-term development of oil and gas asset across Africa.

AMH had also flagged up to US$500 million in conditional future funding to support commercialization of the Cabora Bassa gas project in Zimbabwe, subject to separate binding agreements and development milestones.

Those funding commitments will now not proceed following the termination of the subscription agreement and associated strategic discussions.

Cabora Bassa Strategy Remains Intact

Invictus emphasized that its operational and strategic focus remains unchanged. The company continues to advance its core asset portfolio in the Cabora Bassa Basin, where it holds approximately 360,000 hectares across multiple licenses.

The basin hosts the Mukuyu gas field, one of the largest discoveries in sub-Saharan Africa in 2023, with multi-trillion-cubic-foot gas potential.

Invictus Energy Board Member John Bentley told attendees at African Energy Week 2025 that, “Zimbabwe is not a producer of oil and gas but we hope to change that,” describing the Cabora Bassa Project as a “basin-scale opportunity.”

As such, the company is progressing gas-to-power development, supported by environmental approvals, while preparing for further exploration drilling, including the Musuma-1 well. Invictus is positioning Cabora Bassa as a domestic and regional energy project rather than a purely export-focused development.

Next Steps and Funding Outlook

Looking ahead, Invictus said it is actively engaging with alternative strategic investors, funding counterparties and industry partners.

The board said inbound interest remains strong and believes the company is well positioned to secure value accretive partnerships that align with its forward work program, governance standards and long-term shareholder priorities.

Invictus Energy Managing Director Scott Macmillan previously told Energy Capital & Power that the company’s focus on maintaining strategic flexibility and governance discipline as it advances Cabora Bassa, noting that, “we have a high amount of equity in our license, and it provides us with flexibility on a number of fronts.”

He also said that, following the Mukuyu-2 discovery in December 2023, the company has “now de-risked the asset and – with a tangible resource base – it opens additional options for the company to fund the future work program,” highlighting Invictus’ ability to pursue alternative funding pathways.