…Dr Bynoe corrects Stabroek News false report

DIRECTOR of the Department of Energy, Dr. Mark Bynoe has refuted statements in the media that Guyana was recipient of revenue from the Frontera-CGX business-to-business arrangement for exploration offshore Guyana.

His statement on Wednesday comes following false reports in the Stabroek News’ Tuesday edition. The article titled ‘Frontera’s US$33M signing bonus for portion of unproven oil exploration blocks exposes Exxon’s pittance payment -Jan Mangal’.

In 2018, Frontera Energy Corporation acquired a 33.33 per cent share in CGX Energy’s license for exploration in the Corentyne and Demerara offshore blocks. Frontera bought these shares in exchange for a $7B (US$33.3M) signing bonus payable to CGX.

Frontera had agreed to pay one-third of the applicable costs plus an additional 8.333 per cent of CGX’s direct drilling costs for the initial exploratory commitment wells in the two blocks. The article in question compared the US$33.3M paid to CGX by Frontera for the acquisition of shares with a US$18M signing bonus paid to the government of Guyana by ExxonMobil in 2016 for the Stabroek Production Sharing Agreement (PSA).

It suggested that the ExxonMobil PSA signing bonus was inadequate when compared to the Frontera-CGX payment for shares in blocks where no discoveries have been made.

Speaking with OilNOW, Bynoe addressed the statement in the media. “Please note that the statement attributed to the Stabroek News is a mistake as no signing bonus was received by the Cooperative Republic of Guyana. Frontera farmed into the CGX blocks in the Corentyne and Demerara Blocks and paid the agreed sum for acquiring the requisite equity under a rights-offering agreement. This arrangement is consistent with previous farming-in completed, for example, by Total S.A. into the Orinduik Block,” the article quoted him as saying.

On Tuesday, it was also confirmed by Minister of Finance, Winston Jordan, that no signing bonus was ever received by the government for the Frontera-CGX farm-in. Dr. Bynoe further urged citizens to “peruse the various agreements that were released by the Government of Guyana to reduce these and other misguided statements.” He referenced several PSAs which published by the Ministry of Natural Resources, including the CGX Energy contract, which outline terms and conditions of the agreement Guyana has with companies operating offshore.