Gov’t unlikely to extend license for offshore oil exploration – GS Jagdeo

Cabinet is highly unlikely to extend the exploration license granted to CGX Energy Inc. and Frontera Energy Corporation, joint venture partners in the Corentyne Block offshore Guyana, according to Vice President and General Secretary of the People’s Progressive Party (PPP), Dr Bharrat Jagdeo.

Despite the company’s hopes for additional time to assess oil prospects, the government remains cautious.

During a press conference at the governing party headquarters, Jagdeo expressed dissatisfaction with recent responses provided by CGX to a series of government inquiries.

In response to questions at a news conference on Wednesday at Freedom House, Robb Street, Georgetown, he said, “Cabinet is not inclined to grant an extension to the license”.   

He emphasised that while the company had been given some time to return with further updates, the information provided so far was insufficient.

“We are not inclined to give any extension but [Cabinet] still wants some additional information,” he added.

According to the GS, the company currently holds no license, relieving the government of immediate pressure to address the issues.

CGX had retained a small portion of the Corentyne Block, having relinquished much of it as per its exploration agreement with the government.

In 2023, CGX discovered oil at its Wei-1 well, located 14 kilometers west of the Kawa-1 discovery within the block. Although oil was found at Kawa-1 in January 2022, CGX and Frontera chose to focus on the Wei-1 well.

Further drilling in the Corentyne Block was said to depend on positive results at Wei-1, with the joint venture reportedly having no further obligations beyond this well.

In a recent notice of potential commercial interest submitted to the Guyana Government, the joint venture sought additional time to appraise the Wei-1 discovery and evaluate its viability.