Canadian company bought in to Canje Block even before licence was granted

Nov 04, 2020 News

Kaieteur News – JHI Associates revealed on its website that it farmed into the licence in 2014, one year before former President Donald Ramotar granted the license to Mid-Atlantic Oil & Gas. JHI is the Canadian company, which currently co-owns the Canje Block alongside ExxonMobil, Total SE and Mid-Atlantic and currently has a 17.5 percent stake.
According to a graphic on jhiassociates.com, the company was founded in Ontario, Canada in 2011 and expanded its core team to support Mid-Atlantic’s application for the Canje Block in 2013. JHI said that in 2014 it completed a “pre-licence farmin” with Mid-Atlantic in 2014. The company actually became an owner of the block in May 15, 2015 – days after the 2015 General and Regional Elections, which saw Ramotar unseated by the David Granger-led Coalition. However, this information shows that the companies’ principals had plans for the licence long before the infant Mid-Atlantic, with no qualification to develop the ultra deepwater Canje Block, was granted it.
Together, the two companies held on to the block for a year, then sold a 35 percent interest and the operatorship to ExxonMobil in 2015. They also sold a 35 percent stake to Total SE in 2018.The two companies have worked in synchrony for years in their handling of the Canje licence. Yet, prior to the transactions in which they sold the block, no exploration was actually done as required under the agreement. They simply ceded the responsibility to ExxonMobil, save and except for some seismic data packages, which JHI says it purchased.
The principals of JHI and Mid-Atlantic have worked together prior to their involvement with the Canje licence. Mid-Atlantic’s sole shareholder, Edris Kamal Dookie co-founded CGX in 1996 alongside JHI’s Chief Executive Officer and Director, John Cullen. CGX was granted the Corentyne Block in 1998… In 2000, the company’s rig was forced away from location by Surinamese gunboats while working to fulfill the company’s commitments under the agreement.After the settlement of this matter, CGX was awarded a Petroleum Licence on November 27, 2012 for the Corentyne Block and then in February 13, 2013, a Licence for the Demerara Block. In October, Vice President, Dr. Bharrat Jagdeo had said that work on CGX’s Corentyne and Demerara Blocks is long overdue, as the company has not been fulfilling its commitments.
It was reported in March 2013 that Dookie was no longer part of CGX, but it is unclear why he left, or whether he was fired. In that very month, the application for the Canje Block was made. Cullen is also no longer with CGX. In addition to that linkage, Cullen directs a company called Jaguar Holdings. This company, Dookie and Scott Young (one of JHI’s directors) are all shareholders in a Canada company called Oyster Oil & Gas Limited.

Graphic found on JHI’s website

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