CGX Energy has delayed the commencement of cargo operations at its Berbice Deep Water Port (BDWP) to the third quarter of 2024, it said in a report on its Q1 highlights. As stated in a March update, the company had previously planned for a second-quarter start.
This is the latest in a series of delays to completion of the port project. Guyana’s Minister of Natural Resources, Vickram Bharrat, had said two years ago that the government is unhappy with the pace of progression of this project.
CGX said the new timeline is projected “based on expressed interest from third parties to utilize the Port for the importation and storage of aggregates.”
The port is expected to be capable of loading and offloading vessels, mainly aggregates, from the completed trestle and storing material at the completed port yard.
CGX said that, in May, construction will commence on a ramp to access the trestle; and mooring piles will be installed to aid in bringing vessels alongside. Its report indicated that it is constructing a security fence around the port yard.
While CGX had expected to fully operate the cargo terminal by the end of 2024, its latest update pushed that back to the first half of 2025, subject to construction schedules, financing, and supply chains.
Previous indications placed the start-up of the port’s oil and gas support base in 2025. CGX’s Q1 update specified that this is expected to occur in the second half of 2025.
The BDWP is designed to cater to the oil and gas industry as an offshore supply base and function as a multipurpose terminal for various cargo, including agricultural products, containerized goods, and construction aggregates. It would also boost economic activity in the county of Berbice. However, CGX’s financial trouble has complicated the completion of the port. It is yet to give a guarantee it will secure the financing to complete the project.
CGX and Frontera are partners in a joint venture (JV) seeking to develop the Corentyne Block offshore Guyana. An appraisal program for the 994-kilometer license area is set to expire on June 28, 2024. CGX has made discoveries at the Wei-1 and Kawa-1 wells. The JV has said oil production could begin at Corentyne in 2030. However, the path to this achievement is unclear. The JV has said the estimated prospective resource in the Maastrichtian interval of the block is between 514 million and 628 million barrels of oil equivalent, based on independent evaluations. The JV has not announced drilling plans to prove this estimate.
CGX’s Corentyne Block work is also inhibited by its lack of access to financing. The company has sold stakes in the block, as well as shares in its company, to fund its work program. It is currently a majority-owned subsidiary of Frontera.
The JV is evaluating farm-out opportunities for the Corentyne Block. As of its May 8 Q1 report, CGX has a 27.48% working interest in the block, while Frontera holds 72.52%.
