CGX Energy Inc. and the Frontera Energy Corporation, joint venture partners in the Corentyne Block offshore Guyana, hope for more time to evaluate oil prospects but the country’s Vice President Dr. Bharrat Jagdeo remains wary.
“CGX will not play the Government of Guyana.
“For a very long time, they have been jerking people’s strength… but no longer will we be tolerant of any ambiguity.
“If they are declaring commerciality now, they have to show in specific terms how they intend to develop a project and where the finances are,” the Vice President said at a press conference on Thursday.
So what really is happening?
CGX only holds a small portion of the Corentyne Block because it relinquished much of the block in keeping with its exploration agreement with the government.
Last year, however, CGX found oil at its Wei-1 well. That well is located 14 kilometres west of the Kawa-1 discovery in the block. In January 2022, CGX and Frontera found oil at the Kawa-1 well but decided to focus on Wei-1.
It was previously noted that further drilling in the Corentyne block is contingent to positive results at Wei-1. The joint venture reportedly has no further obligations beyond Wei-1.
In a recent notice of potential commercial interest submitted to the Guyana Government, the joint venture hopes to get extra time to appraise the discovery and evaluate its viability.
Jagdeo was clear that the government is being strict with the joint venture.
“We’ve given them time as per the law to do all they had to do but this is crunch time now.
“If they are saying they are moving to a project, they have to show us what the project is and show us how they are going to finance the project,” he said.
