Vice President Dr. Bharrat Jagdeo addressed questions today regarding a letter sent by CGX Energy Inc. to the Government of Guyana and the possibility of arbitration over the Corentyne Block licence.
In a press statement issued on Thursday, CGX Energy Inc. and its joint venture partner, Frontera Energy Guyana Corp. reaffirmed their commitment to developing the Kawa-1 and Wei-1 discoveries in the Corentyne Block. The companies also emphasized their belief that the Petroleum Agreement for the Corentyne Block remains valid.
While the companies stated that constructive communications with the government have been ongoing with the most recent exchange occurring on September 25, 2024; they reported not receiving any formal notification from the government about the status of the licence. “The JV recognizes that recent comments from certain Government officials have created confusion amongst stakeholders, which have materially affected the JV and caused substantial harm to the JV’s efforts to develop the Corentyne Block,” the statement read.
In response to the uncertainty, CGX and Frontera initiated a 60-day negotiation period as outlined in the Corentyne Block Petroleum Agreement to resolve any disputes amicably.
When asked about this development at his press conference, Vice President Jagdeo noted that while he has not seen the letter, he reiterated that based on legal advice, the licence had lapsed due to non-compliance with conditions and timelines stipulated in the agreement.
“As far as we are concerned, the legal advice is that the licence lapsed because of the conditions under the licence and the timeline for the licence itself. That’s our position….then there is no issue to discuss. If they have a different interpretation, then we can go through the legal process,” he asserted.
Jagdeo refrained from elaborating further, citing the potential for the matter to go to court. However, he outlined, “When your licence expires, do you have to get a formal communication from the government? If it says two years your licence is approved for, if you don’t get an approval for, if you don’t get an approval for extension, that means, consistent with the law of the country, it’s done.”
Jagdeo also hinted at a history of concerns regarding CGX’s actions. “But I’m not going to litigate this in the public domain; our lawyers will deal with that. But CGX has a track record of… particular behavior,” he remarked, without elaborating further.
