CGX pushes ahead with Berbice Deep Water Project; set to cost US$130M

Feb 11, 2021 News

Suresh Narine, CGX Chairman

Kaieteur News – CGX Energy, through its wholly owned subsidiary, Grand Canal Industrial Estates (“GCIE”), recently informed its shareholders that it is pushing ahead with its Berbice Deep Water Port. The project, which is currently under construction, will encompass both oil and gas offshore operations support as well as agricultural and general cargo. The project is expected to be in the range of US$130M and targets full operation of oil and gas support base in early 2022 and full operation of the cargo terminal aspects of the port in 2023.
The company further announced that its engineering designs, permitting, marketing and ongoing civil works are all on schedule to meet these targets. The Port, which is located adjacent to Crab Island on the Eastern Bank of the Berbice River, is 4.8 kilometres from the Atlantic Ocean.
Furthermore, GCIE said it expects that the port will significantly boost local content engagement in the oil and gas sector and add enhanced logistics capacity for import and export, including expandable capacity to accommodate the possibility of increased product flow to and from the southern states of Brazil. Due to the location being close to Suriname, it said that the Port’s oil and gas support functions will also help to serve the rapidly growing offshore exploration and development activities in that country’s oil and gas sector. Additionally, GCIE said it would add significant capacity to the agricultural sector, supporting rice, sugar, agro-processing and agricultural materials.
GCIE expects that during the construction phase, approximately 1,000 individuals will be directly employed, with approximately 300 full time employees engaged in the long-term operations of the port.
In the company’s latest financial report, it recalled that the land for the deep-water project was acquired in 2010. The lease for the approximately 55 acres of land was granted to CGX’s subsidiaries, CGX Resources Inc. and transferred in 2012 to another one of its subsidiaries, GCIE Holdings Limited (“GCIE”), which is incorporated in Barbados. That lease is for 50 years and renewable for the second period of 50 years.
This newspaper understands that CGX Resources Inc. owns a 16-acre plot of land, which is accessible to the Deep Water Port site via approximately 4.5 km of roadway, 3.2 km of which was built and renovated in 2020 by the parent company.
The plot of land has been developed by the company as a functional, fenced logistics yard, with compacted soil, installation of geotextiles, and coverage with gravel and other foundational material. According to the financial statements, the Logistics Yard is functional and will service Phase 1 of the Deep Water Port Facility until its functions are relocated to the 55-acre plot on the bank of the Berbice River at a later date.
It should be noted that the company said it incurred additions of US$468,280 and $721,359 respectively with respect to expenditures on the logistics yard and the Deep Water Port Facility. CGX said that the bulk of the monies spent last year were on continued planning for a full-service Deepwater Port Facility and sea defence.=

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