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Gov’t to meet with CGX to discuss status of Berbice port facility – GS Jagdeo

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General Secretary of the People’s Progressive Party, Dr Bharrat Jagdeo has said that the government will soon meet with Canadian-based CGX Energy Inc to discuss the way forward regarding the Berbice port facility.

The project has faced several delays, with cargo operations expected to commence in the third quarter of this year.

“When CGX started, they had about 55 acres of land to build this facility. We then reduced it, I think, to 25 acres. They made a commitment several years ago, maybe two or three years ago, that they would complete this project. They have been unable to complete it as yet,” the general secretary told reporters at a media conference on Thursday.

General Secretary of the People’s Progressive Party, Dr Bharrat Jagdeo

The multi-million-dollar project is being constructed on the eastern bank of the Berbice River, adjacent to Crab Island.

The port includes a wharf facility and a trestle as well as a cargo terminal, and will support oil and gas activities offshore Guyana.

This multi-purpose terminal, notably, is aimed at servicing agricultural import/export, containerised and specialised cargo including aggregates for construction purposes.

Once operational, the facility is also expected to boost the exportation of rice and sugar, providing critical support to the agro-processing industry.

On Wednesday, CGX Energy and its joint venture partner, Frontera Energy submitted a last-minute notice of potential commercial interest to the government for their Wei-1 discovery in the Corentyne Block, which preserves its interest in the license area.

This notice was submitted two days before the end of the Corentyne Block’s appraisal programme, which is Friday, June 28, 2024.

Dr Jagdeo said in light of this notice, the government will meet with the joint venture to discuss a way forward.

“We have to see whether they are prepared to move to a project. If they’re moving to a project, then they would still need that facility. If there is no project, we’d have to engage them on what happens there. So, we’re going to be inviting them in for a meeting, but next week we will go to the cabinet for guidance on this matter,” he explained.

Regarding the Notice of potential commercial interest, Dr Jagdeo said that this proposal will go to Cabinet, but made it clear that the company must show “in specific terms” their finances and how they plan to develop the project, or they run the risk of being denied a production license.

“Let me make it clear, CGX will not play the government of Guyana. For a very long time, they’ve been jerking people’s strings, maybe their investors. But no longer are we going to be tolerant of any ambiguity,” he underscored.

Dr Jagdeo continued, “We have given them time as per the law to do all they had to do. But if this is the crunch time now, if they are saying they’re moving to a project, they have to show us what this project is and how they’re going to finance it.”

In 2023, the Joint Venture successfully drilled the Wei-1 well, its second well on the Corentyne block. The well served as an appraisal well for the Kawa-1 Appraisal Programme with the government. In a joint press release issued on Wednesday, the companies stated that they have engaged in regular, constructive and collaborative conversations with the government throughout their tenure on the Corentyne block, including discussions regarding conditions under which further activities could be performed by the Joint Venture in the Corentyne block.

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