Invictus Energy seals deal with Qatari royals; to get $500m in conditional finance

By Agencies

Invictus Energy (Invictus), which discovered huge natural gas deposits in Zimbabwe in 2023 has signed a binding memorandum of understanding and share subscription deal with a Qatari investment firm, Al Mansour Holdings Group (AMH).

Backed by a senior member of Qatar’s royal family, Mansour bin Jabor bin Jassim Al Thani, AMH will acquire 19.9% of ASX-listed Invictus and provide $500m in conditional finance to advance Invictus’ Cabora Bassa Project to commercial production, the Australian junior said in a release on August 27.

In addition, Invictus and AMH have established a joint venture, Al Mansour Oil and Gas (AMOG) which will aim to acquire producing and near-term oil and gas assets in Africa.

According to their agreement, Invictus would be in charge of technical, commercial and operational matters in AMOG while AMH would fund the acquisitions and their development.

Commenting on the development, Invictus Managing Director Scott Macmillan said, “The strategic investment by Al Mansour Holdings and formation of Al Mansour Oil and Gas with the backing of His Highness Sheikh Mansour is a transformational milestone for Invictus.

“It significantly enhances the growth trajectory for our Cabora Bassa Project and opens the door to strategic upstream opportunities across the African continent.

“Through our role in AMOG and the strategic investment by AMH in Invictus, our shareholders will gain exposure to a diversified portfolio of development and producing assets, backed by world-class partners and capital strength.”

The announcement of the deal, per Upstream on August 27, drove Invictus’ share price on the ASX by almost 150% on that day.

Some ‘high-impact’ asset transactions are at an advanced stage, with the first expected to complete before the end of the year noted Invictus, which is also listed on Zimbabwe’s Victoria Falls Stock Exchange.

The Qatari firm has committed to investing about $24.7mn for Cabora Bassa’s works programme including drilling a well on the acreage.

“We’re proud to launch Al Mansour Oil & Gas in partnership with Invictus Energy, a company that shares our vision for responsible and impactful energy development across the African continent,” said Mansour bin Jabor bin Jassim Al Thani.

“Our investment in Invictus and our new AMOG joint venture reflects our long-term commitment to Africa’s growth, energy security and economic transformation.

“Our goal with AMOG is to unlock the immense potential of Africa’s oil and gas sector in a way that benefits all stakeholders – host governments, communities and investors alike.’

It was also reported that Invictus and the Zimbabwe government have signed a production and profit-sharing agreement for the Cabora Bassa Project.

Authorities have granted national project status to the project as well, guaranteeing a range of incentives to the asset in which Zimbabwe, through its sovereign wealth fund, holds 10% interest.