As government continues to work towards ensuring that Guyana remains socially, economically and environmentally sound, recent developments in the energy sector are indicative of forthcoming stability.
This is, according to a Government Information Agency ( GINA) report, evident as CGX Energy Inc, the Canadian- based oil and gas Exploration Company, focused on ex ploration for oil in Guyana, has announced that the parties to the Georgetown Petroleum Prospecting Licence, have renewed existing agreements with the Georgetown Petroleum Prospecting Licence ( PPL) offshore Guyana, thereby entering into the second renewal period.
Managed by a team of experienced oil and gas and finance professionals from Canada, the United States and the United Kingdom, CGX is financed internationally and has thousands of shareholders worldwide.
The specific parties to the renewal agreement include operator Repsol Exploracion SA ( 15 percent), YPF Guyana Limited ( 30 percent), Tullow Guyana BV ( 30 percent) and subsidiary of CGX en ergy, CGX Resources Inc ( 25 percent).
According to a release from the organisation, during the first 18 months of the second renewal period there is a minimum work commitment of one exploration well. In transition to the second renewal period and as required by the Georgetown PPL, approximately 30 percent of the area under contract has been relinquished to the government.
The release added that processing and interpretation of the recently ac quired 1,839 sq km 3D seismic is well advanced for the selection of the location for the commitment well.
The CGX president and Chief Executive Officer ( CEO) stated, “On November 21, 2009, CGX announced it was scheduled to drill on its 100 percent Corentyne PPL during the second half of 2010. With the renewal of the Georgetown PPL, CGX will be participating in a second well in the basin.” With the commission ing of the Kingston Power Plant, unparalleled numbers of cars on the road of Guyana and strides towards a low carbon pathway, energy security is critical to the overall productivity of the national economy.