In spite of the economic pressures brought on by the COVID-19 pandemic, CGX Energy Inc, which is headquartered in Canada and operates in Guyana through four subsidiaries, will be moving ahead with its plans to construct a deepwater port in Berbice. Once completed, the port is expected to service the highly active offshore oil and gas exploration industry in the Guyana-Suriname Basin.
This was disclosed in the company’s latest financial statement for the period ended June 30, 2020. In that report, the company said that it acquired in 2010, a lease of approximately 55 acres of land situated on the eastern bank of the Berbice River. The lease was granted to of CGX’s subsidiaries, CGX Resources Inc and transferred in 2012 to another one of its subsidiaries, GCIE Holdings Limited (“GCIE”) which is incorporated in Barbados. That lease is for 50 years and renewable for the second period of 50 years.
CGX said that the location has been cited as the most strategic for a Deepwater Port facility servicing the oil and gas and agricultural industries in Guyana by a number of international studies. The company said that the location also has the advantage of being very close to the rapidly developing offshore oil and gas industry in Suriname. Further to this, CGX said it has over the past years performed various developmental works on the site, including the installation of vertical drains and geotechnical treatment of the land, the building of access roads, and the maintenance of bridges.
In addition, the company said it has articulated a phased approach to the full development of the facility and has engaged in detailed engineering design and permitting of Phase 1a of the facility. In fact, CGX disclosed that it will begin the construction of Phase 1a this year.
Expounding further it said that CGX Resources Inc owns a 16-acre plot of land which is accessible to the Deep Water Port site via approximately 4.5 km of roadway, 3.2 km of which was built and will be renovated in 2020 by the parent company.
Guyana Standard understands that the plot of land has been developed by the company as a functional, fenced logistics yard, with compacted soil, installation of geotextiles, and coverage with gravel and other foundational material. According to the financial statements, the Logistics Yard is functional and will service Phase 1a of the Deep Water Port Facility until its functions are relocated to the 55-acre plot on the bank of the Berbice River at a later date.
For the three and six-month periods ended June 30, 2020, the company said it incurred additions of US$468,280 and $721,359 respectively with respect to expenditures on the logistics yard and the Deep Water Port Facility. CGX said that the bulk of the monies spent in the current period were on continued planning for a full-service Deepwater Port Facility and sea defense.