CGX to give up more of its concessions for auction

Last Updated on Saturday, 18 June 2022, 23:48 by Writer

Vice President Bharrat Jagdeo on Wednesday indicated that the government has asked CGX Energy to relinquish parts of its offshore concessions so that they could be added to a list of areas to be auctioned later this year.

He made it clear that CGX Energy, which is in a joint venture with fellow Canadian company Frontera, would be giving up parts of the concessions in the Demerara and Berbice blocks so that they could be “put to the auction” in September of this year.

CGX Energy, he said, was expected to issue a statement on the “positive” development. “We are working on a solution that you will see announced either today (Wednesday) or tomorrow (Thursday) that could result in a larger of those already relinquished blocks going to the auction in September; they are not d0ing this on their own- that’s the government,” Mr. Jagdeo said.

He said no discussions were held on the extension of CGX’s work programmes but he declined to immediately say whether CGX Energy has opted to give up more of its concessions.

Earlier this year, CGX announced that it would be focussing on their Corentyne block, offshore Guyana, and had no plans of drilling in the Demerara block this year.

CGX-Frontera earlier this year capped the Kawa-1 well in the Corentyne Block after discovering hydrocarbon-bearing reservoirs and said it would be moving on to explore for oil in the Wei-1 target in the Corentyne Block.