Vice President, Dr. Bharrat Jagdeo made it clear during a press conference today that CGX Energy Inc will not “play with the government of Guyana.” His statement comes as the company and its joint venture partner, Frontera Energy Corporation, filed a notice of potential commercial interest for their Wei-1 well discovery in the Corentyne Block offshore Guyana yesterday.
Last June, CGX Energy received a significant extension of their Corentyne Block license which had expired, following the filing of a notice of potential commercial interest for the Kawa-1 discovery. This extension allowed them additional time to explore and develop the area as the company boasted of potential prospects.
However, as the renewed period is scheduled to end tomorrow, Friday June 28, CGX has suddenly filed another notice, this time for the Wei-1 well, raising concerns within the government about the company’s commitment and transparency in its operations.
Jagdeo revealed that the Ministry of Natural Resources, led by Minister Vickram Bharrat, had recently received the notice from CGX Energy. “Yesterday, I got a call from the minister and he told me that they had received this notice. I have not examined it as yet. But we will do so. Next week it will go to the Cabinet,” Jagdeo stated. However he conveyed a clear message: the government will not tolerate any ambiguity or delay from CGX Energy regarding their intentions and plans for the Wei-1 well.
“CGX will not play the Government of Guyana,” Jagdeo emphasized. “For a very long time, they’ve been jerking people’s strength— maybe their investors, but no longer are we going to be tolerant of any ambiguity. If they are declaring commerciality now, they have to show in specific terms how they intend to develop a project and where the finances are.”
This declaration marks a significant shift in the government’s approach toward the company which in the past has been given considerable latitude to explore and develop oil fields but to date has lost two oil block, Berbice and Demerara due to their inability to meet work obligations. However, Jagdeo’s remarks signal a new era of stringent oversight and demand for concrete project plans and financial transparency from operators.
It is also important to note that last year, CGX Energy experienced a reduction in the size of their Corentyne Block due to relinquishment clauses in their contract. The original area of 6,200 sq km was reduced to 993.9 sq km.
