Spanish oil company Repsol has reached a settlement with Canadian CGX Energy over a dispute related to an offshore block located in Guyana.
According to a statement by CGX, Repsol has agreed to pay $900.000 to CGX Resources pursuant to the terms of the Georgetown JOA.
CGX had earlier started arbitration against Repsol in the London International Court of Arbitration and received an injunction against Repsol in from the High Court of the Supreme Court of Judicature in January and August, 2014, preventing the Spanish company’s farm-out deal agreement with Germany’s RWE Dea.
In an announcement by CGX, it has been reported that Repsol has also agreed to evaluate opportunities in the Guyana-Suriname basin and it was granted a ninety (90) day option to present a farm-in proposal to acquire at least a 10% participating interest in any of the Corentyne Block (100%), Demerara Block (100%) or the Berbice Block (62%).
In addition, CGX Energy and Pacific Rubiales Energy Corp. have been granted a similar option on the Kanuku Block. In the event that a proposal is accepted, any definitive agreements are subject to due diligence and the terms of any pre-existing petroleum agreement or joint operating agreement.