Canadian oil company, Frontera Energy says it is not giving up its claim to Guyana’s Corentyne Block without a fight, despite the licence coming to an end.
Earlier this year, the Government of Guyana had declared expired, the licence for the joint venture (JV) partners, Frontera Energy Guyana Corp. and CGX Resources Inc. However, the JV has insisted that both its Petroleum Prospecting License (PPL) and Petroleum Agreement (PA) for the block are still valid.
Frontera’s Chief Executive Officer, Orlando Cabrales, reaffirmed the company’s stance during its first quarter earnings call last Friday. “The JV remains firmly of the view that its interest in the Corentyne Block remains in place and in good standing,” Cabrales said. He called on the government to resolve the matter affecting the JV’s investment in the block and warned, “Should the parties not reach a mutually agreeable solution, the Joint Venture and its other stakeholders are prepared to assert their legal rights.”
In June 2024, Frontera and CGX notified the government of a potential commercial oil find at the Wei-1 well. The joint-venture had reaffirmed their commitment to developing the Kawa-1 and Wei-1 discoveries in the Corentyne Block, and emphasized their belief that the Petroleum Agreement for the Corentyne Block remains valid.
However, Guyana’s Minister of Natural Resources, Vickram Bharrat had explained that following the JV’s notification of discovery, the government had given them extra time for appraisal. He noted that at the end of the licence the JV was supposed to be ready to move to production, but unfortunately, they were not in that position. This he noted, led to the expiration of the licence for Frontera and CGX.
On February 11, 2025, the JV said it received a letter from the Government stating that the PPL had either already expired or would be cancelled within 30 days. While the government maintained that both the PPL and PA were no longer valid, it invited the joint venture to submit arguments before a final decision was made.
While the government had given Frontera and CGX time to respond, it was later announced that the companies were officially booted from the block. Frontera and CGX had rejected the government’s position, maintaining that their licence remains valid.
On March 26, the companies announced that they filed a notice of intent, alleging that the government’s actions violated the United Kingdom–Guyana Bilateral Investment Treaty and the Guyana Investment Act. This triggered a three-month window for both sides to negotiate a solution.
Moreover, Frontera has also pegged the Corentyne Block Exploration and Evaluation (E&E) asset value at US$432.3 million as of March 31, 2025. The company cited significant oil potential in the block and a development plan that includes subsea infrastructure and production facilities.
