Frontera, CGX postpone drilling of Wei-1 well

…construction starts on Berbice Deepwater Port

Frontera Energy Corp and CGX Energy Incorporated, two Canadian companies which are joint venture partners in the Corentyne oil block, have announced the postponement of drilling of the Wei-1 well offshore Guyana, citing contractor obligations.

The two companies announced this in a statement on Monday, explaining that an agreement was reached with the Guyanese Government to start drilling no later than January 31, 2023, to allow contractor Noble Corp Plc to complete current obligations in Trinidad.
According to CGX in its statement, this timeline “is in keeping with the schedule provided to CGX Resources Inc by Noble Corp so as to allow for the Noble Corp Discoverer to complete its current obligations.”
Frontera and CGX were previously scheduled to begin drilling the well by November 27. Additionally, the Noble Discoverer semi-submersible mobile drilling unit that was slated to spud the well was expected to arrive in Guyana’s waters since October.
Wei-1 is one of two wells on Guyana’s Corentyne Block that the companies have committed to drill. The other well, Kawa-1, struck light oil and gas condensate in May, though the companies had not said how much oil was found or whether it was commercially viable.
In a statement, Executive Co-Chairman of CGX, Professor Suresh Narine expressed appreciation for the collaborative approach of the Government. He also noted that the joint venture partners have been in regular contact with both Noble Corp and the Government.
“Given the delays in arrival of the Noble Corp Discover to the Wei-1 drilling location, the joint venture has, with support from the Government of Guyana, revised its anticipated spud window for the Wei-1 well to January 2023.”
“The joint venture looks forward to building on the light oil and condensate discovery at Kawa-1 with the spudding of the Wei-1 well in the northern section of the Corentyne Block, offshore Guyana,” Narine said.

Port
Meanwhile, with respect to the Berbice Deepwater Port, CGX announced that in-river construction activity has begun on a 50 x 12 metre access trestle, together with the necessary dredging of the river.
“Construction of the wharf, perpendicular to the trestle, will follow. The cargo terminal aspects of the BDWP are targeted to commence in mid-2023 and operation of oil and gas support base in late-2023, subject to construction schedules and supply chains,” CGX said.
CGX noted that in collaboration with the Government, the immediate focus of the port has shifted to service expected demand for aggregates and building materials to support the Government’s infrastructure development in Berbice. It was noted that these necessary commodities must be imported into the region from both local and foreign sources.
The CGX deep-water harbour project has been in the works since 2010. CGX’s subsidiary, Grand Canal Industrial Estates Inc (GCIE), has been engaged in civil works related to the construction of the US$130 million Berbice Deepwater Port, which intends to serve as an offshore supply base for the oil and gas industry, and as a multi-purpose terminal cargo handling base to service agricultural import/export, containerised and specialised cargo.
Initially, it was expected that the offshore oil and gas support shore base would be operationalised by the third quarter of 2022, and the cargo terminal by the end of 2023. However, in its financial statements in August, CGX informed shareholders that it would be unable to meet the 2022 deadline and that a revised schedule for completion is being discussed with the contractor.
Previously, the Government had expressed concerns over the slow pace of the project and had given the company up to September month-end to submit a plan on how it intends to move forward with the port facility. (G3)