GRENADA-Grenada terminates energy contract with Global Petroleum Group.

ST. GEORGE’S, Grenada, CMC – The Grenada government Monday announced that it had terminated its agreements with the US-based oil and gas company, Global Petroleum Group (GPG) after it said that the company had failed “to meet its obligations”.

A government statement said that Prime Minister Dickon Mitchell “ will address the nation in due course to provide the national context for this decision” and that 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”.

Attorney General Claudette Joseph said that Grenada has acted “lawfully, responsibly, and in the national interest” and after 18 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”.

In the statement, the Mitchell government said that after 18 years without commercial production and following a thorough review of GPG, it had decided to “lawfully” terminate its agreements with the company, adding, “Grenada deserves better. Eighteen years is long enough.”

In 2008, the Government granted GPG a license covering 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 for four of those blocks, providing the legal framework under which any oil and gas found in those four offshore blocks would be developed and its benefits shared with the country.

The Government said that in 2016, it signed a Memorandum of Understanding (MoU) with GPG reserving the remaining seven offshore blocks for GPG, on condition that it first brings the original project, namely the four blocks, into commercial production.

“That condition was never met. On 29th April 2026, the Government terminated the 2016 Memorandum of Understanding regarding the seven reserved blocks. On 1st August 2026, the Government terminated the Development License and the Production Sharing Agreement, granted in relation to the four (4) blocks,” the statement said.

It said that after taking office in 2022, the Government established a Technical Working Group of capable Grenadians, with a mandate to assess the country’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 by the 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. “

The statement said that in accordance with the agreements and the Petroleum and Natural Gas Deposits Act, the Government formally notified GPG of these breaches and allowed the company to respond, in writing and in a meeting.

“GPG did not remedy the breaches. As a result, the Government decided to terminate,” the statement said, adding “this was not a decision taken lightly.

“Grenada is a nation that honors 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.”