Frontera, CGX Corentyne block expired licence leaves no room for negotiations – Jagdeo

Last Updated on Thursday, 12 December 2024, 23:23 by Writer

Guyana on Thursday said there was no room for negotiations with Canadian co-venturers, Frontera and CGX Energy, over the Corentyne block because the licence has expired.

Vice President Bharrat Jagdeo told a press conference that nothing requires government to formally inform the CVs that their licence to the 6,200 square kilometer Corentyne block has expired.

He made known government’s position on the prospect of negotiations after Frontera said hours earlier in its ‘operational update and 2025 capital and production Guidance’ that it dispatched to the Guyana government a letter activating a 60-day period for the parties to the Corentyne block Petroleum Agreement to make all reasonable efforts to amicably resolve all disputes via negotiation, as provided for in the Corentyne block Petroleum Agreement.

But Mr Jagdeo maintained that there was nothing to reach an agreement and government was prepared to face legal action. “Let me don’t say much more because it might end up in court and we’re not worried about it going to court,” he said.

While Frontera and CGX on Thursday insisted that it still enjoys legal rights to the Corentyne block and that comments from certain government officials “have created confusion amongst stakeholders which have materially affected the JV (Joint Venture) and caused harm to the JV’s efforts to develop the Corentyne block”, the Guyanese Vice President said the companies had no basis for laying a claim. “You can’t negotiate on something that you actually don’t have any longer. As far as we’re concerned and the legal advice is the licence lapsed because of the conditions under the license and the time-line for the licence itself,” he said.

Frontera and CGX Energy added that they remained committed to the potential development of the Corentyne block as supported by the JV’s recent discoveries at Kawa-1 and Wei-1.

The companies said they last had “constructive communications” with the Guyana government regarding the Corentyne Block on 25 September 2024.