After eighteen years without commercial production and following a thorough review of the Global Petroleum Group’s failure to meet its obligations, the Government of Grenada has lawfully terminated its agreements with the company. Grenada deserves better. Eighteen years is long enough.
In 2008, the Government of Grenada granted Global Petroleum Group (“GPG”) a license over
eleven (11) offshore blocks to explore Grenada’s waters for oil and gas. In 2013, GPG was granted
a development license and signed a Production Sharing Agreement, over four (4) of those blocks,
providing the legal framework under which any oil and gas found in those four offshore blocks
was to be developed and its benefits shared with the country. In 2016, the Government and GPG
signed a Memorandum of Understanding reserving the remaining seven (7) offshore blocks for
GPG, on condition that GPG first brings the original project (that is, the four (4) blocks) into
commercial production.
That condition was never met. On 29th April 2026, the Government terminated the 2016
Memorandum of Understanding regarding the seven blocks that were reserved. On 1st August
2026, the Government terminated the Development Licence and the Production Sharing
Agreement, granted in relation to the four (4) blocks.
After taking office in 2022, the Government established a Technical Working Group of capable
Grenadians, with a mandate to assess Grenada’s hydrocarbon potential and to see it developed for
the benefit of the Grenadian people. Since 2023, the Technical Working Group has engaged
directly with GPG to establish the facts — engagement that is a matter of record, notwithstanding
public statements by GPG suggesting otherwise.
That engagement uncovered several breaches by GPG of its obligations under the Development
Licence and the Production Sharing Agreement, including: its failure to complete the minimum
work it committed to; its failure to prepare a development plan that met the standard required bythe agreements and the international industry; and its failure to demonstrate that it holds the funds necessary to carry out the development work it has proposed.
In accordance with the agreements and the Petroleum and Natural Gas Deposits Act, the
Government formally notified GPG of these breaches and gave the company the opportunity to
respond, in writing and in a meeting. GPG did not remedy the breaches. As a result, the
Government took the decision to terminate.
This was not a decision taken lightly. Grenada is a nation that honours the contracts it signs and
expects the same of its partners. Where a company fails, over an extended period, to meet its
obligations and deliver for the country, the Government has both the right and the duty to act. This
was a necessary step, taken in the national interest, to protect Grenada’s resources and its future.
Grenada deserves better. Better partners. Better agreements. Better relationships. Better results.
Grenada remains open for business, and the Government is working to attract investment that is
transparent, credible, and delivers real value for its people.
The Prime Minister will address the nation in due course to provide the national context for this
decision. In addition, in the coming days, the Office of the Attorney General and the Technical
Working Group will provide further details on the factual circumstances which led to the
Government’s decision.
“Grenada has acted lawfully, responsibly, and in the national interest,” said the Attorney
General of Grenada, Sen. The Hon. Claudette Joseph. “After eighteen years, and after every reasonable opportunity given to GPG, the Government had a duty to the people of Grenada to bring these agreements to an end. Grenada deserves better, and we are moving forward with confidence and with respect for the rule of law.”
