CGX Energy Inc. and Frontera Energy Corp. are assessing all legal options to assert rights to the Corentyne block in Guyana after the Guyanese government cancelled the petroleum prospecting license.
The joint venture companies received a 30-day notice from the government of its intention to cancel the offshore license, citing that there are no reasonable grounds to grant any extensions to the JV in respect of its appraisal or exploration obligations under the license or the petroleum agreement.
The companies believe that the joint venture interests and license for Corentyne block remain in place and in good standing and that the petroleum agreement has not been terminated.
The JV had been in the process of entering an appraisal phase of the project, with first oil expected in 2030, 7 years after discovery and a final investment decision (FID) expected in 2026 (OGJ Online, Dec. 12, 2023).
Frontera is majority shareholder in Corentyne block (72%) with CGX Energy holding the remaining (28%). Frontera holds 76.05% ownership in CGX Energy.
Alex Procyk | Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).
