Canadian oil companies, Frontera Energy Corporation and CGX Energy recently disclosed that oil production in the Corentyne Block is possible by 2030. The partners are aiming for a definitive investment decision by 2026.
The foregoing was announced on Monday during a webinar which was publicly aired.
Notably, just last month, Minister of Natural Resources Vickram Bharrat confirmed that CGX faced a deduction of 5,206.1 sq km from its Corentyne Block, resulting in a revised area of 993.9 sq km. Initially covering 6,200 sq km, the relinquished portion of the block was reverted to government control due to the activation of relinquishment clauses within the contract.
The Corentyne Petroleum Agreement, received by CGX on November 27, 2012, had an original expiration date set for 2022. However, an extension was granted after a notice of potential commercial interest was filed for the Kawa-1 discovery in December 2022.
Due to the Kawa-1 and Wei-1 discoveries, CGX applied to conduct an appraisal programme which has been approved by government.
Further, to support their exploration endeavors in the Corentyne block, Frontera and CGX have enlisted the services of U.S. investment banking company Houlihan Lokey.
Currently, the joint venture has a 100% working interest in the Corentyne block with Frontera holding a 72% stake and CGX the remaining 28%.
