VICE President, Dr. Bharrat Jagdeo, has issued a stern warning to CGX Energy Inc., indicating that the company risks losing its stake in the Corentyne block if it fails to demonstrate financial capability for progressing towards a production licence and commercial development terms.

The Guyana Oil and Gas Energy Chamber (GOGEC) has voiced strong support for the government’s stance on this matter. In a recent statement, GOGEC emphasised the necessity of ensuring that Guyana’s oil resources are efficiently developed and monetised.
CGX Energy Inc. achieved a significant milestone in 2021/2022 with the successful drilling of its operational well, Kawa-1, located in the eastern channel sand complex within the northern segment of the Corentyne block. Despite this progress, the company has faced reported financial challenges, contributing to delays in advancing the project towards the development stage.

Acknowledging the investments made by CGX Energy Inc. to reach this phase, GOGEC highlighted the critical importance of timely resource development to avoid potential asset stranding. The organisation stressed that if CGX Energy Inc. cannot secure the necessary financial resources to move forward, exploring alternative options becomes imperative for maximising resource utilisation.

The looming decision at the national level is deemed crucial by stakeholders, underscoring the need for strategic actions to ensure the efficient and sustainable development of Guyana’s offshore resources.
This development signals a pivotal moment for CGX Energy Inc. as it navigates financial challenges amid governmental pressures to accelerate the Corentyne block’s commercial viability.