PANAMA CITY, PANAMA (Piero Stewart, Energy Analytics Institute, 11.Feb.2025) — The government of Guyana has informed joint venture (JV) partners CGX Energy Inc. and Frontera Energy Corporation that “there are no reasonable grounds to grant any extensions to the joint venture in respect of its appraisal or exploration obligations under the License or the Petroleum Agreement related to Corentyne block offshore Guyana.”
“Government has taken the position that the license, together with the joint venture’s petroleum agreement, have terminated and that, in the opinion of the government, there are no reasonable grounds to grant any extensions to the joint venture in respect of its appraisal or exploration obligations under the license or the petroleum agreement,” CGX and Frontera announced 11 Feb. 2025 in an official joint statement.
“Furthermore, the government says that, if it is determined that the license has continued, or that the joint venture holds any other type of license contemplated by applicable legislation, the letter serves as a 30-day notice of the government’s intention to cancel such license,” CGX and Frontera revealed in their statement.
The JV partners have been invited by government on or before 22 Feb. 2025 to submit any representations to consider prior to the government making its final decision as to whether to not cancel any license that may exist.
“Any such license will cease to have effect on 10 Mar. 2025, unless any representation that may be made are favorably considered,” CGX and Frontera said in the statement.
Additionally, government also states its willingness “to extend the time for good faith negotiations to the dates set forth above so as to allow receipt and consideration of any representation” the JV makes.
According to the statement, the letter says such invitation and intention to cancel are in no way any admission the JV currently holds a license of any nature.
“The joint venture remains firmly of the view that its interests in, and the license for, the Corentyne block remain in place and in good standing and the petroleum agreement has not been terminated. Notwithstanding the foregoing, the joint venture is assessing all legal options available to it to assert its rights and will respond to the government. 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.”
____________________
By Piero Stewart reporting from Panama City. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
