Gov’t not likely to extend CGX licence – Jagdeo

In a definitive stance on Wednesday, Vice President Dr. Bharrat Jagdeo told reporters that the Cabinet remains highly unlikely to offer an extension to the license granted to CGX Energy Inc. and the Frontera Energy Corporation –joint venture partners in the Corentyne Block offshore Guyana.

Though the company had hoped for more time to evaluate oil prospects, the government remains wary.

Responding to questions at a press conference from the governing party headquarters, Jagdeo said recent answers given to a series of enquires made by the government by CGX were not satisfactory.

“Cabinet is not inclined to grant an extension to the licence,” Jagdeo said.

He noted that the company was given some time to return and provided a further update.

“We are not inclined to give any extension but [cabinet] still wants some additional information,” Jagdeo said.

He said currently the company has no licence which places no pressure on the government to address the issues.

CGX held onto 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.