Invictus Energy Partners with Qatar’s Al Mansour to Support Cabora Bassa Production Push
Invictus Energy (ASX: IVZ) has struck a transformative deal with Qatar’s Al Mansour Holdings, securing a strategic partner and long-term funding for its Cabora Bassa project in Zimbabwe.
The agreement gives Al Mansour a 19.9% equity stake in Invictus at a premium, alongside a commitment of up to US$500 million in conditional future funding to progress the Mukuyu gas discovery to commercial production.
As part of the alliance, Invictus and Al Mansour have also created a new Africa-focused upstream company, Al Mansour Oil & Gas (AMOG), to acquire and develop energy assets across the continent.
Investment and Funding in Place
Under the binding memorandum of understanding and share subscription agreement, Al Mansour will inject A$37.8m into Invictus through the issue of around 398 million shares at A$0.095 each.
The subscription went through at a premium to the prevailing market price, underlining the partner’s confidence in the business.
Al Mansour has also agreed to provide up to US$500m in future funding, subject to separate agreements and development milestones.
One representative from Al Mansour will join the Invictus board to help entrench the new partner’s role as a cornerstone investor and strategic collaborator.
Creation of Al Mansour Oil & Gas
In parallel with the equity investment, Invictus and Al Mansour have established AMOG as a joint venture vehicle it will use to acquire both producing and near-term development oil and gas assets across key African jurisdictions.
Invictus will take responsibility for identifying, assessing and managing assets within the AMOG portfolio, leveraging its technical and commercial expertise in African exploration and development.
Al Mansour will finance all AMOG activities, from acquisitions to development and operations, through backing from Qatar-based investors, while Invictus is free carried on its 10% stake.
‘Strategic Upstream Opportunities’
His Highness Sheikh Mansour bin Jabor bin Jassim Al Thani will chair the new venture, with Invictus managing director Scott Macmillan serving as deputy chair and Ryan Singh appointed as chief executive of AMOG.
Mr Macmillan said the deal was a “transformational milestone” that “significantly enhances the growth trajectory for our Cabora Bassa project and opens the door to strategic upstream opportunities across the African continent.”
Sheikh Mansour added, “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.”