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Govt. issues 30-day notice to terminate CGX, Frontera Corentyne Block licence
Kaieteur News- The Government of Guyana has issued a 30-day notice of its intention to cancel CGX Energy Inc. and Frontera Energy Corporation’s Petroleum Prospecting Licence for the Corentyne Block offshore Guyana. The joint venture (JV) partners revealed this in a statement issued on Tuesday.
30-day notice to terminate
According to the statement, the government has taken the position that the licence and the Petroleum Agreement with the joint venture have already been terminated. It was further noted that in the government’s view, there are no reasonable grounds to grant an extension to CGX and Frontera for their exploration and appraisal obligations.
The statement also outlined that if it is determined that the JV still holds a valid licence, the letter serves as a formal 30-day notice of the government’s intent to cancel it.
“The Government argues that the Licence has terminated, it invites the Joint Venture on or before February 22nd, 2025, to submit any representations [the Joint Venture] wish[es] [the Government] to consider prior to [the Government] making [its] final decision,” it was stated.
It was outlined that any licence will cease to be effective on March 10, 2025, unless representations made by CGX and Frontera are “favorably considered.” Additionally, the statement indicates that the government is open to good faith negotiations within the specified timeframe.
Moreover, despite the government’s position, CGX and Frontera maintain that their interests in the Corentyne Block remain valid.
“The Joint Venture remains firmly of the view that its interests in, and the Licence for, the Corentyne block remain in place and in good standing,” the JV said in their statement. Notably, the companies further stated that they are currently evaluating legal options and intend to formally respond to the government.
CGX and Frontera underscored their commitment to resolving the issue and continuing its multi-year investment in the Corentyne Block. “The Joint Venture looks forward to expeditiously resolving this matter and continuing its multi-year efforts and investments to realize value for the people of Guyana and its shareholders,” it was stated.
Last month, the Minister of Natural Resources, Vickram Bharrat said that 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.
Minister Bharrat had stated that the joint venture’s licence, along with an extension previously granted, had come to an end. Consequently, the Corentyne Block now reverts to State control.
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.
(Govt. issues 30-day notice to terminate CGX, Frontera Corentyne Block licence)
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