Joint Venture Partners in Guyana Seek Resolution Over Corentyne Block License Termination

Joint venture (JV) partners, Canada’s CGX Energy and Frontera Energy, are facing a challenge as the Guyanese government has terminated their license for the Corentyne block off the coast of Guyana. The partners have expressed their intention to engage in talks with the government to resolve the issues or pursue legal action to defend their interests.

License Termination Notification

In February 2025, CGX Energy and Frontera received a notification from the Guyanese government stating that their petroleum prospecting license for the Corentyne block had been terminated. The government cited no reasonable grounds for granting any extensions to the joint venture regarding its appraisal or exploration obligations under the license or the petroleum agreement.

Government’s Decision

On March 13, the JV partners received another communication from the government confirming the termination of the petroleum agreement and the cancellation of the prospecting license with immediate effect. Despite this, CGX Energy and Frontera maintain that their interests and license for the Corentyne block are still valid and in good standing.

Seeking Resolution

The JV partners deny the termination of their petroleum agreement and urge the government of Guyana to resolve the issues affecting their investments in the Corentyne block amicably. They emphasize their willingness to assert their legal rights if a mutually agreeable solution cannot be reached.

Exploration and Potential Farm-Down

The JV partners made the Wei-1 discovery during the drilling of an appraisal well for the Kawa-1 appraisal program in 2023. They have been exploring a potential farm-down of their interests in the Corentyne block, where they currently hold a 100% working interest, with Frontera owning 72% and CGX holding 28%.

Future Prospects

Despite the challenges faced by the JV partners, Guyana has seen significant oil discoveries in recent years. ExxonMobil is working on developing multiple projects in the country, with plans for a new deepwater oil project. Additionally, the government has approved a substantial investment in a gas-to-energy project.

In conclusion, the JV partners are determined to resolve the issues surrounding their Corentyne block license and continue their efforts to unlock the block’s potential for the benefit of Guyana and their shareholders.