Govt. officially boots CGX-Frontera from Corentyne Block

Mar 14, 2025 News

Kaieteur News- The Government of Guyana has officially booted joint venture (JV) partners, CGX Energy Inc. and Frontera Energy Corporation, from the Corentyne Block, located offshore Guyana.

Govt. officially boots CGX-Frontera from Corentyne Block

In an update on March 13, the joint venture said that they received a response from the government titled, “The Government is of the view that the Petroleum Agreement and Prospecting Licence are at an end.”

It was further stated that the government made its position known that it, “hereby terminates the Petroleum Agreement and cancels the Prospecting Licence with immediate effect.” However, the JV said it remains firmly of the view that its interests in, and the Licence for, the Corentyne Block remain in place and in good standing and that the Petroleum Agreement has not been terminated.

CGX and Frontera warned, “The Joint Venture and its shareholders continue to invite the Government of Guyana to amicably resolve the issues affecting the Joint Venture’s investments in the Corentyne Block. Should the parties not reach a mutually agreeable solution, the Joint Venture and its shareholders are prepared to assert their legal rights.”

It was further noted that they look forward to expeditiously resolve this matter and continue its multi-year efforts and investments. In early February, CGX and Frontera disclosed in a statement that the Government of Guyana 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.

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.

In their response 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. 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.

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 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. officially boots CGX-Frontera from Corentyne Block)

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CGX, Corentyne Block, Frontera, oil

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