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CGX holds out that Corentyne Block licence remains in place
Kaieteur News- CGX Energy Inc. and Frontera Energy Corporation, joint venture (JV) partners, have responded to the Government of Guyana’s decision to terminate their Petroleum Prospecting Licence for the Corentyne Block offshore Guyana.
In a statement on February 24, the JV maintained that their agreement with the government remains valid and in force despite the government’s 30-days’ notice to terminate the licence.
Executive Chairman for CGX (Guyana) Energy, Professor Suresh Narine
The JV confirmed that it had provided a response letter to the government, contesting the termination of its licence and the grounds on which the decision was made. “Despite the Government’s contradictory positions, the Licence and the Joint Venture’s Petroleum Agreement with the Government in respect of the Corentyne block remain valid and in force. Additionally, in the Response Letter, the Joint Venture has contested the Government’s purported termination of the Licence, including the grounds for such termination,” the JV said.
The partners further asserted that their licence has not been terminated. “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 and the Petroleum Agreement has not been terminated,” the statement read. Notwithstanding, the Joint Venture said it continues to assess all legal options available to it to assert its rights in respect of the Licence and the Petroleum Agreement.
It was further stated, “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 from the Corentyne Block.”
Earlier this month, CGX and Frontera disclosed in a statement that the Government of Guyana has issued a 30-day notice of its intention to cancel their licence.
The JV had said that the government has taken the position that the licence and the Petroleum Agreement with the joint venture have already been terminated. For their part, the government told the partners that in their view, there are no reasonable grounds to grant an extension to CGX and Frontera for their exploration and appraisal obligations.
The previous 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 “favourably 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. In January, Guyana’s 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.
(CGX holds out that Corentyne Block licence remains in place)
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