Latest update January 17th, 2025 6:30 AM
‘Nothing legally Govt. can do for CGX, licence expired’ – Min. Bharrat
Kaieteur News- The Government of Guyana cannot legally extend CGX and Frontera’s exploration licence for the Corentyne Block, and as a result can do nothing to assist the joint venture, Minister of Natural Resources Vickram Bharrat said on Tuesday.
During his ministry’s end-of-year press conference, Minister Bharrat stated that the joint venture’s licence, along with an extension previously granted, has come to an end. Consequently, the Corentyne Block now reverts to State control.
Minister of Natural Resources, Vickram Bharrat
He said, “With regards to CGX, the position remains the same. There’s no change to position, with regards to how we dealing or handling the CGX matter…”
Minister Bharrat stated that the government has applied the same system to all companies in similar situations. “So, it’s the same, it’s the same way we deal with all companies, and not to say that we are treating one company separate or different from the other. The same system that was used for Repsol the same system was actually used with CGX, with the exploration licence, the block obviously goes back to the State, there is no cost recovery from that, because they did not move to production,” he explained.
Bharrat reminded that CGX was granted additional time for appraisal following their discovery notification. However, this extension has also expired, leaving the government with no legal basis for further action.
He added, “That has expired too, so there is nothing legally that we can do with regards to any further extension or that matter.”
Last month, CGX in a statement noted that the JV remains committed to the potential development of the Corentyne Block as supported by the JV’s recent discoveries at Kawa-1 and Wei-1.
It was stated that the last communication the JV had with the government was on September 25, 2024. However, the companies said they had not received any formal communications from the Government of Guyana regarding the status of the licence.
“The JV is firmly of the view that the Corentyne Block Petroleum Agreement remains in place,” CGX and Frontera said. It was further stated, “The JV recognizes that recent comments from certain Government officials have created confusion amongst stakeholders, which have materially affected the JV and caused substantial harm to the JV’s efforts to develop the Corentyne Block.” As such, the companies sent the letter to government activating the 60-day period a negotiation with the hopes of an amiable solution.
The minister clarified, “There is no dispute, that’s the first thing, there is no dispute between government and CGX.” In addressing the State’s engagement with CGX, Minister Bharrat said there had been discussions prior to the expiration of the licence.
“But there were engagements then…we met with them, we had an engagement with them then and they understood fully the position of our government because there is no way legally that you can extend beyond the appraisal period,” he added. He suggested that CGX either have to reapply, like some companies would have, or wait until we have another bid round.
“It’s either you (CGX) take the step as Repsol to reapply or you wait until the bid round and you bid for the block if it is available but there is no other legal provision,” the minister said.
(‘Legally, Govt. can do nothing for CGX, its licence has expired’ – Min. Bharrat)
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