Zimbabwe fast-tracks Muzarabani oil and gas project to cut fuel imports

Drilling operations in the Cabora Bassa Basin

HARARE, ZIMBABWE – Zimbabwe is accelerating development of the Muzarabani oil and gas project as part of efforts to reduce reliance on imported fuel, stabilise local supply, and shield the economy from volatile global energy prices driven by Middle East tensions. The project, located in the Cabora Bassa Basin, is now the country’s most advanced hydrocarbon exploration initiative, according to government officials.

Australian-listed Invictus Energy, which is leading exploration in the basin, has completed extensive seismic surveys and drilled the Mukuyu-1 and Mukuyu-2 wells, confirming the presence of hydrocarbons. Deputy Minister of Mines and Mining Development responsible for oil and gas, Caleb Makwiranzou, told Parliament that the government has finalised a Petroleum Production Sharing Agreement (PPSA) with Invictus, establishing a stable and internationally competitive legal framework for oil and gas extraction.

Preparations for well pads at Musuma-1 are expected to be completed by the end of the first quarter, paving the way for further drilling and gas field appraisal.

“The global energy crisis presents both challenges and opportunities,” Makwiranzou said.“Zimbabwe relies heavily on imported petroleum, and these conflicts make it urgent for us to explore and develop our own energy resources.”

The push comes as rising global oil prices linked to conflict involving Iran, the United States, and Israel continue to drive up domestic fuel costs. The Zimbabwe Energy Regulatory Authority (ZERA) recently announced a second fuel price increase this month, with diesel now selling at US$2.05 per litre and petrol at US$2.17 per litre. The increases have already triggered transport fare hikes across the country, adding to cost-of-living pressures for households and businesses.

The government says natural gas from Muzarabani could play a key role in diversifying Zimbabwe’s energy mix, complementing existing hydroelectric and solar power sources. Analysts note that domestic gas production could reduce foreign-currency outflows on fuel imports and support industrial growth through more reliable, potentially cheaper energy.

“Developing local energy resources is critical for long-term economic stability, especially for import-dependent economies,” said an energy analyst based in Harare.

Authorities are also positioning the project within a broader regional strategy, citing potential collaboration with Mozambique, which has established gas infrastructure. Makwiranzou said Zimbabwe could leverage its proximity to Mozambique to develop cross-border energy partnerships and strengthen its role in regional power supply.

“The Cabora Bassa Basin or Muzarabani is giving us an opportunity… we can cooperate or enter into joint ventures with Mozambique,” he said.

To fast-track progress, the government has established an inter-ministerial committee involving the Ministries of Finance, Energy, and Mines, alongside partnerships with local entities such as Mutapa Investment Fund. The initiative reflects growing urgency to secure alternative energy sources amid global uncertainty and rising fuel import costs. If successfully developed, the Muzarabani project could mark a turning point in Zimbabwe’s energy sector, reducing import dependence while positioning the country as an emerging player in regional oil and gas production.

Muzarabani oil and gas project