There is no dispute between CGX Energy and the Guyana government, the country’s Minister of Natural Resources, Vickram Bharrat, said Tuesday.
The Minister’s comment comes a month after CGX and Frontera Energy – joint venture partners in the Petroleum Prospecting License for the Corentyne Block – said they wrote the government, activating a 60-day period to “amicably resolve all disputes via negotiation” pertaining to the block.
The Guyana government had, in 2024, refused an application by the joint venture (JV) that would have given it time to appraise its Wei-1 discovery. The government contended that it was not convinced that the joint venture could secure the funding or a capable partner to move forward.
The JV previously got an extension to appraise its Kawa-1 discovery. The Wei-1 discovery was made during the Kawa-1 appraisal period, which lasted two years.
Bharrat and Vice President Bharrat Jagdeo have said the license expired and that the acreage is back with the State. CGX and Frontera believe their license is in good standing and that they are entitled to the time sought to conduct appraisal work.
Despite CGX’s letter, Minister Bharrat told OilNOW Tuesday, “There’s no dispute between the government and CGX.”
Bharrat added that the government’s position remains the same. He likened the government’s refusal to grant the extension to a similar refusal of Repsol in 2023.
Repsol’s Kanuku Block license ran out in 2023, with no commercial discoveries made. The company wanted more time and asked the government for a brand-new license. Repsol, the operator, was partnered with Tullow, TotalEnergies, and Qatar Petroleum. Though the government briefly considered the application, it refused. The Repsol-led group had expended around US$500 million in exploration and other work, funds that could’ve only been recovered had they move to production.
“It’s not to say that we’re treating one company separate or different from the other. The same system that was used with Repsol, the same system was actually used with CGX,” Bharrat said.
He said the government gave CGX some time to do the appraisal, adding “There is nothing legally that we can do with regards to any further extension…”
While CGX’s letter indicates it could enter negotiations with the Guyana government now, Bharrat said there are no ongoing talks.
CGX was the operator of the Corentyne Block. Its interest was 27.48%, while Frontera’s was 72.52%.
OilNOW could not reach Dr. Suresh Narine, Executive Co-chair of CGX’s Board of Directors, for a comment.
