Frontera threatens Guyana with legal action over Corentyne Block

Last Updated on Friday, 9 May 2025, 18:02 by Writer

Canadian oil exploration company, Frontera Energy, on Friday threatened to take legal action against Guyana if negotiations fail to reverse the scrapping of its licence for the Corentyne Block where oil was found at two locations.

Frontera Energy’s Chief Executive Officer, Orlando Cabrales, told a first-quarter earnings call that if his company and joint venture (JV) partner, CGX Energy, do not reach an agreement with Guyana legal action would be taken.

“The JV remains firmly of the view that its interest in the Corentyne Block remains in place and in good standing. Should the parties not reach a mutually agreeable solution, the JV and its other stakeholders are prepared to assert their legal rights,” he said.

After Frontera and CGX announced on March 13, 2025 that the Guyana government had indicated that it was terminating the petroleum agreement and cancelling the Petroleum Prospecting Licence for the Corentyne Block, Mr Cabrales said that on March 26, 2025, Frontera sent a notice of intent to the government of Guyana alleging breaches of the United Kingdom-Guyana bilateral investment treaty, the Guyana Investment Act.

He said the notice of intent initiated a three-month period for consultations and negotiations between the parties to resolve the dispute amicably.

The Guyana government had maintained that Frontera-CGX Energy’s permit expired and there was no room for negotiations.

In January, 2022 Frontera-CGX had said the Kawa-1 well encountered approximately 177 feet (54 metres) of hydrocarbon-bearing reservoirs within Maastrichtian, Campanian and Santonian.

And in June 2023, CGX and Frontera had announced that the Wei-1 well encountered 210 feet of hydrocarbon bearing sands in the Santonian horizon.