Guyana Pulls the Plug on Frontera-CGX JV – Exxon Stays Winning

ByJulianne Geiger– Mar 13, 2025, 11:30 AM CDT

Guyana Flagimage

Guyana’s government has officially yanked the plug on the Frontera-CGX joint venture, canceling its oil prospecting license for the Corentyne block. The writing had been on the wall since February, when officials gave the JV a 30-day warning.

Now, it’s official.

‘;
document.write(write_html);
}

The Corentyne block was supposed to be a much-needed diversification play in Guyana’s oil scene, which is basically ExxonMobil’s playground. With the U.S. supermajor running the show in the Stabroek Block—home to over 11 billion barrels of oil equivalent—the Frontera-CGX partnership was a scrappy underdog trying to carve out a slice of the pie.

But now they’re out.

While the companies are predictably disputing the cancellation, no details have surfaced about any last-ditch legal plays or backroom negotiations. And let’s not forget what this really means: Exxon’s grip on Guyana’s offshore bonanza just tightened.

This move comes as Exxon, along with Hess and CNOOC, continues steamrolling ahead with its Guyana projects. The latest, Longtail, is set to be the region’s biggest natural gas development yet, with plans for 1.5 billion cubic feet per day of gas and 290,000 barrels per day of condensate. Longtail, which will include the Longtail, Tripletail, and Turbot discoveries, will be the consortium’s eighth project offshore the South American country.  The supermajor and its partners have several oil projects on stream, collectively producing more than 650,000 barrels per day (bpd) of crude oil.

At this rate, Exxon’s Guyana operations might soon rival some OPEC members.

Meanwhile, oil prices are wobbling, with WTI hovering near $67 and Brent struggling above $70. Not ideal for smaller players like Frontera and CGX, who were already fighting an uphill battle. Exxon, however, will be just fine.

The message is clear: if you want to drill in Guyana, you’d better have deep pockets and Exxon-sized patience.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com

Join the discussion | Back to homepage

 

  • Related Posts

    Qatar Cuts Prices for Its Oil

    Qatar has followed Saudi Arabia in cutting the price of its al-Shaheen crude for May deliveries, Reuters has reported, citing trade sources. Al-Shaheen for delivery in May will now cost…

    Russia Switches to Crypto in Oil Trade

    Russia is increasingly using cryptocurrencies in its oil trade with top clients China and India amid U.S. sanctions, Reuters has reported, citing unnamed sources, who said Russian oil traders were…

    Have You Seen?

    DAC one focus with European CO2 Summit 2025 around the corner

    • March 14, 2025
    DAC one focus with European CO2 Summit 2025 around the corner

    UK risks falling behind on SAF targets, advisory body warns

    • March 14, 2025
    UK risks falling behind on SAF targets, advisory body warns

    Oil Prices Rebound on Unclear Path to Ukraine Ceasefire

    • March 14, 2025
    Oil Prices Rebound on Unclear Path to Ukraine Ceasefire

    Qatar To Supply Natural Gas To Syria’s New Government

    • March 14, 2025
    Qatar To Supply Natural Gas To Syria’s New Government

    Iran Sanctions Prop Up Oil Prices

    • March 14, 2025
    Iran Sanctions Prop Up Oil Prices

    Russia Switches to Crypto in Oil Trade

    • March 14, 2025
    Russia Switches to Crypto in Oil Trade

    Qatar Cuts Prices for Its Oil

    • March 14, 2025
    Qatar Cuts Prices for Its Oil

    EPA Says it is Initiating ’31 Historic Actions’

    • March 14, 2025
    EPA Says it is Initiating ’31 Historic Actions’

    Alternative fuels ship regs not likely before 2028 ‘at earliest’

    • March 14, 2025
    Alternative fuels ship regs not likely before 2028 ‘at earliest’

    Air Liquide raises €500m through green bond to support energy shift

    • March 14, 2025
    Air Liquide raises €500m through green bond to support energy shift