Latest update March 12th, 2026 9:56 PM
No new development with Corentyne Block
…Govt. position remains the same – Min Bharrat
(Kaieteur News) – Minister of Natural Resources, Vickram Bharrat has revealed that government has met with joint venture (JV) partners CGX Energy Inc. and Frontera Energy Corporation but maintained that the government’s position that the JV’s Petroleum Prospecting Licence (PPL) and Petroleum Agreement for that oil block has ended.
Minister of Natural Resources, Vickram Bharrat
CGX had disclosed that on November 4, 2025, government through its counsel communicated its willingness to participate in a final “Without Prejudice” meeting with the JV to discuss the dispute. The company had said that the government proposed to meet with the JV on November 25 or December 2, 2025. On the sideline of an event on Tuesday, when asked for an update and whether government has met with the oil companies, Minister Bharrat said, “We had an initial discussion. That process will continue…so as is it the position remains the same so as soon as there is any new development obviously, I will make an announcement like we always do there is nothing to hide about it.”
Despite government position that the JV future in the Corentyne Block has come to an end, CGX recently tapped a US$2.5 million loan from Frontera to fund its share of corporate working capital and other agreed-upon expenditures. According to CGX, it has already drawn down and received US$1.9 million under the facility. The US$2.5 million will be available in tranches on a non-revolving basis for six months, commencing once conditions precedent to the first drawdown are met. The loan and accrued interest become due one year after its start date, with interest accruing at 19.32% per annum, compounded monthly. The company noted that the loan remains subject to customary conditions, including regulatory approvals.
The JV has stated that they remain open to engaging in good faith discussions with the government and, “continues to firmly maintain that its interests in, and the license for, the Corentyne block remain valid and in good standing and that the Petroleum Agreement for such block has not been terminated.” The oil companies had also threatened legal action.
Kaieteur News had reported that after more than two decades of exploration, the JV finally struck oil at the Kawa-1 well in January 2022. Just ahead of the June 28, 2024 deadline for the block’s appraisal programme, the JV submitted a Notice of Potential Commercial Interest to government for the Wei-1 well, on June 26. The government later said stringent conditions would need to be met to retain the block. In March 2025, the government issued a 30-day notice and gave the oil companies a chance to make representations. Government was open to good-faith negotiations within the specified timeframe. Government had stated that there are no reasonable grounds to grant an extension to CGX and Frontera for their exploration and appraisal obligations and has repeatedly reaffirmed that the JV’s interest expired on June 28, 2024.
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