CGX exploring legal options to defend Corentyne prospecting oil license

The CGX Energy Inc. and Frontera Energy Corporation joint venture (JV) is actively exploring all available avenues, including legal options, to prevent the Government of Guyana from terminating its Petroleum Prospecting License for the Corentyne block.

In a public statement on Tuesday, the JV confirmed that it had received official communication from the government, granting the company 30 days to provide justification for why its exploration license and petroleum agreement with the state should remain in effect.

According to the JV, the government has taken the position that both the license and the petroleum agreement have been terminated and that no reasonable grounds exist for granting further extensions for appraisal or exploration obligations. Additionally, the government has indicated that if the companies hold any other type of license under applicable legislation, the notice serves as a 30-day warning of its intention to cancel those authorisations as well.

Despite this, CGX noted that the government has invited the JV to present any representations it wishes for consideration by February 22, before a final decision is made. The government also expressed its willingness to extend the negotiation period to accommodate good-faith discussions.

The JV maintains that its interests in the Corentyne block remain valid and in good standing and that the petroleum agreement has not been terminated.

“Notwithstanding the foregoing, the Joint Venture is assessing all legal options available to assert its rights and will respond to the government accordingly,” the statement read. The JV expressed its commitment to resolving the matter expeditiously.