CGX Energy Incorporated through its subsidiary Grand Canal Industrial Estates Inc. (GCIE) is moving forward with the construction of a Deep Water Port Facility at Crab Island in Region Six.
An advertisement in yesterday’s edition of the Stabroek News invites bids for three projects related to the construction of the facility. These projects are: the construction of wharf platform and approach trestle; resurfacing of road and access way to the port site; and the construction of two bridges.
According to the ad, eligible bidders will at a minimum possess valid certificates and compliance from the National Insurance Scheme and Guyana Revenue Authority. They are also expected to have in their employ managers and line employees with a minimum of ten years’ experience in executing work of a similar nature, have executed at least G$300 million in construction work over the last three years, possess an accredited Health, Safety and Environment Management Plan as well as own or have the ability to lease essential construction equipment.
Bidding documents will be available at the company’s Lamaha and Peter Rose Street Office from Wednesday November 6th to Wednesday November 13th.
The CGX deep water harbour was first announced nine years ago by former CGX boss Kerry Sully but years of money woes have delayed the project.
Last year current Executive Chairman of the Canadian oil and gas exploration company Suresh Narine stated, that some eight to ten international studies have shown that Crab Island, located on the bank of the Berbice River, is the most strategic location for a deep water port and once again noted that the company would be embarking on major works there.
Stabroek News reported that Narine said the location’s proximity to Suriname is also very strategic because “there is tremendous exploration going on in Suriname”.
CGX has some 900 metres of frontage, of which some 200 metres has already been cleared out at Crab Island.
In August 2018, Narine indicated that “overburdens and vertical drains” had already been constructed. He noted that the company had a “substantial bid out to do a breakwater along the entire seashore and explained that a platform would be created to catch the channel.
He had stressed that the first phase of the project was expected to take some 18 months but there had been no update on the project.
According to Narine, the overall basic project was expected to take three years and cost between US$180 million and US$200 million of additional capital expenditure.
He further added that cost may change “depending on if additional partners come on board.”
Since that time CGX has signed a deal with fellow Canadian oil explorer Frontera Energy Corporation, which now has a 33.33 per cent working interest in the company’s two offshore blocks.
The joint venture agreement with Frontera sought to enable CGX to finance the drilling costs related to the two offshore blocks and also provide financial support as a critical step in a series of transactions that CGX sought to undertake in order to restructure its liabilities and provide for sufficient working capital to enable it to advance its offshore exploration projects in Guyana.
In its statement on the issue, CGX said that for the three-month period ended March 31, 2019, it improved its working capital deficiency by US$22.3 million and as of the same date, had cash on hand amounting to US$15.06 million as result of a shares offering that closed on March 12, 2019.
Under the joint venture agreement, Frontera was also required to pay a signing bonus of US$33.33 million for the interest in the two blocks and the statement said that this is now due but in the amount of US$8.5 million. This is because CGX has outstanding debts due to Frontera of US$24.8 million.
