After years of delays, CGX finally looks to drill in Corentyne, Demerara blocks

Jan 27, 2021 News

Kaieteur News – Following several years of delays on their part, CGX Resources Incorporated, is looking to drill wells in the Corentyne and Demerara blocks – two oil concessions offshore Guyana.
According to a notice from the Environmental Protection Agency (EPA), applications for Environmental Authorization have been submitted to the regulator for the following projects, “CGX Resources Inc. – Petroleum Exploration Drilling (1 Well), Corentyne Block, Offshore Guyana” and “Petroleum Exploration Drilling (1 Well), Demerara Block, Offshore Guyana.”
In accordance with Section 11 (2) of the Environmental Protection Act, Cap 10:05, Laws of Guyana, the EPA stated that the applications for the projects listed above have already been screened by the agency to assess the potential environmental impacts, “and it has been determined that the projects will not significantly affect the environment nor human health and are therefore exempt from the requirement for an Environmental Impact Assessment (EIA).”
Notwithstanding this decision, the EPA says it will require CGX to prepare and submit an Environmental Assessment and Management Plan (EAMP) for each of the projects. “The EAMP will assess any possible impacts on the environment and/or human health, and detail specific mitigation measures to be taken to ensure that the proposed projects are implemented in an environmentally-sound manner,” the regulator said.
In keeping with the Environmental Protection Act and the EPA’s regulations, the agency reminded that any person who may be affected by any of the proposed projects may lodge an appeal against the neglect of an EIA with the Environmental Assessment Board within 30 days of the publication of the notice.
Corentyne and Demerara Blocks
CGX’s decision to drill comes after years of delays on the part of this Canadian-based exploration company. In fact, Kaieteur News had reported since 2012, CGX Resources Incorporated had been in possession of a licence for the Corentyne Block.
According to the agreement signed with the then government on November 12, 2012 for the offshore concession, CGX was supposed to drill at least four wells on the block by 2019. But this did not occur. Instead of fully meeting its obligations, CGX had drilled two wells in 2012, both of which were abandoned — Eagle-1 as a dry hole and Jaguar-1 for safety concerns. Since then, it has made promises to drill more wells in search of oil but until recently, never did.
CGX had even gotten the former Coalition administration to water down their work programme for Corentyne block, but the company still failed to honour the new obligations.
With regards to the Demerara Block, Kaieteur News had reported that after being in possession of a licence for the Demerara oil block offshore Guyana for eight years, CGX had failed to drill a single well. What is notable, is that this company claims Guyana owes it US$20M despite drilling no well on Demerara Block.