GEORGETOWN, Guyana, CMC – The Guyana government is unlikely to extend the exploration license granted to two Canadian-based oil and gas exploration companies, CGX Energy Inc. and Frontera Energy Corporation, whose joint venture partners in the Corentyne Block offshore Guyana.
Vice President Bharrat Jagdeo said that despite the Canadian companies’ hope for additional time to assess oil prospects, the government remains cautious. The government expressed dissatisfaction with CGX’s recent responses to a series of inquiries.
“Cabinet is not inclined to grant an extension to the license,” Jagdeo told reporters, adding that while the company had been given some time to return with further updates, the information provided so far was insufficient.
He added, “We are not inclined to give any extension, but (Cabinet) still wants some additional information.”
Jagdeo said the Canadian 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, relinquishing much of it per its exploration agreement with the government.
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 depended 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.
and then 