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CGX must show finances or lose Corentyne Block – Jagdeo says
Map showing the location of the Corentyne Block
Kaieteur News – CGX Energy Inc. and Frontera Energy Corporation are facing a critical juncture regarding their Corentyne Block operations offshore Guyana.
“This is crunch time now,” warned Vice President Bharrat Jagdeo on Thursday during his weekly press conference, as he issued a stern warning to the joint venture.
Executive Chairman for CGX (Guyana) Energy, Professor Suresh Narine
In response to a last-minute Notice of Potential Commercial Interest filed for the Wei-1 Well located in the Corentyne Block, on June 26, just days ahead of the June 28 deadline for the Corentyne Block’s appraisal programme, Jagdeo underscored that stringent conditions must be met to retain the block.
The submission of this notice is pivotal as it secures CGX and Frontera’s stake in obtaining a Production Licence, providing an extension for appraisal activities pending government approval.
When questioned about the sudden move by the Corentyne Block partners, Jagdeo disclosed that Minister of Natural Resources Vickram Bharrat notified him of the submission on Wednesday. Although he has not yet reviewed the notice personally, Jagdeo assured that the government would scrutinize it thoroughly before presenting it to Cabinet in the upcoming week.
To this end, Jagdeo said, “But let me make it clear, CGX will not play the government of Guyana. For a very long time they have been jerking people strength maybe their investors but no longer are we going to be tolerant of any ambiguity.”
Vice President (VP), Bharrat Jagdeo
He continued, “If they are declaring commerciality now, they have to show in specific terms how they intend to develop a project and where the finances are.”
The Vice President accepted that he should not have been so blunt about the situation; he said that the government has allowed CGX and Frontera, as per law to do their appraisal. He added, “But this is crunch time now.”
“If they now say they are moving to a project, they have to show us what this project is and show us how they are going to finance the project,” Jagdeo reiterated.
Failure to secure government approval for further appraisal would mark CGX’s third forfeiture of an oil block in Guyana and Frontera’s second, following the relinquishment of the Demerara and Berbice Blocks in 2022.
In the notice, CGX and Frontera reminded that they have successfully drilled the Wei-1 well, its second well on the Corentyne block.
“The well fulfilled the obligation under Phase Two of the Second Renewal Period of the original 10-year Licence and served as an appraisal well for the Kawa-1 Appraisal Programme with the Government of Guyana,” CGX and Frontera said in its release.
The companies stated too that with support from investment bank and capital markets experts Houlihan Lokey, they continue to actively pursue strategic options to unlock the potential of the Corentyne Block.
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