(Reuters)

Guyana’s government has cancelled the Frontera and CGX Energy joint venture’s prospecting license for the Corentyne block, the companies said on Thursday.

In February, the South American nation gave a 30-day notice to CGX and Frontera for cancellation of the license.

The Corentyne block was seen as a key effort to diversify Guyana’s oil industry, currently dominated by a consortium led by Exxon Mobil.

The Frontera joint venture said it was informed of the licence cancellation in a letter from the government. The companies did not provide any further details, but disputed the cancellation.