CGX Energy to start dredging, dock construction for port in Guyana -executive (updated)

Frontera Energy

17/02/2022 16:27

(Adds Frontera Energy statement)
    By Sabrina Valle and Marianna Parraga
    GEORGETOWN, Guyana/HOUSTON, Feb 16 (Reuters) - Canada-based
oil company CGX Energy  OYL.V  will begin dredging and building
the docks of a key deepwater port at Berbice, in eastern Guyana,
planned to serve the South American nation's oil and agriculture
sectors, the firm's chairman said on Wednesday.    
    CGX Energy unit Grand Canal Industrial Estates in 2010
acquired a 50-year lease for a 55-acre parcel strategically
located near the Berbice River for the project. When complete,
it would become Guyana's third oil port and its only deepwater
facility.
    "The construction of docks and dredging will begin very
shortly," said CGX Energy Co-Chairman Suresh Narine. "The works
onshore are well advanced," he said, noting a skilled workforce
has been hired for building the port. 
    Contractors are being selected, a process to be followed by
construction of onshore buildings. "We are targeting the end of
2022 for the operation of the offshore supply base component of
the port," he said. 
    CGX Energy's parent company Frontera Energy  FEC.TO  late on
Wednesday said it anticipates further investments of $5 million
to $10 million for the deepwater port project. 
    The port will mainly serve the oil and gas industry by
supplying equipment, fuel, cement, water and power. But it also
will have a portion dedicated to agricultural exports, whose
production is rapidly expanding in that region of Guyana, and
other areas for container ships, cruise ships and specialized
cargo.
    The facility, which could serve neighboring Suriname, also
plans to accommodate imports and exports of agricultural goods
transported from Brazil after a road connecting both nations is
completed.  urn:newsml:reuters.com:*:nL1N2TZ27V
    Besides the port project, CGX Energy and Frontera are
drilling for oil in Guyana's offshore Corentyne block, where
they announced a discovery of oil and gas resources yet to be
measured.  urn:newsml:reuters.com:*:nL1N2UB34Z
    The CGX-Frontera joint venture anticipates a second
exploration well to be drilled in the second half of the year at
Corentyne. The Wei-1 well is under a proposed $110 million-$130
million budget that will require new financing.

 (Reporting by Sabrina Valle in Georgetown, Guyana, and Marianna
Parraga in Houston
Editing by Matthew Lewis)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))